Shadows don't work for some reason

[Shippokitsune25]

Hi everyone! I'm new to Oblivion (just bought it yesterday, and I love it) and I'm enjoying everything, but have one problem... I have

AMD 3200+ 64 bit processor

Nvidia 7800 GS 256MB OC

2 gigs of RAM

500 GB hard drive

5.1 surround sound soundcard

 

and run everything on high smoothly (patched up to 1.2 something + the unofficial patch), but my shadows won't work! I have the sliders up to full, but I see no shadows for my character, or anyone else for that matter... Anyone know what's wrong? I'll supply more info if needed.

 

Oh, and I also have that enchanted weapons appear white bug, but I heard that's from patch 1.2