Well after countless hours of trying to figure out the issue, I was able to finally limit it down to a bad codec. I've uninstalled all my codecs and installed K-Lite which seemed to have fixed my issue(I've also done a full reinstallation of Oblivion). This also fixed my issue in Morrowind. Apparently the codec that caused the issue was the DVIX one. So if anyone has the same issue, try uninstalling it and install the K-Lite codec pack. I would like to thank Striker879 and everyone else who helped me get this issue resolved! You all were immensely helpful and I really appreciated the help.