Here are some new videos it seems like everyone has dropped off of the Oblivion modding scene. I have just been making my own mods for the game using the construction set. This is where my work has gotten me so far.
As long as you have both the 360 and PC versions updated to the same level and as long as you don't make an error that would cause either PC or 360 versions to crash they will work. The version numbers are different. the 360 high version number is 1.2.1 and the PC 1.2.0416, so the 360 version is actually a little higher, if you can find an older TU for Oblivion you can probably drop it down and have even more compatibility, but as far as I know they never made a newer patch for the PC version because of the unofficial patches and stuff.
I think the problem with texture mods is not the .ddx/.dds format I think the problem is that user made textures don't display correctly on the 360 because it is more specialized to use only textures with certain image properties. Evidence of this can be seen when you look at a mod like phoenix equipment, it uses .dds and they display , they aren't as good as they are on the PC and their are certain weird things about them but they do work. I also installed and got working Imperial City Furniture , however they textures were all gray no color just a shape.
I went through and adjusted a ton of settings for HDR lighting and weather coloring patterns and have made something that i think looks very similar to Natural Weather by Max_Tael , the difference being I have not used any texture replacement, and Max_tael used extensive HD images some of them from NASA and other well known places, and Natural Environments is the best mod ever for Oblivion. I have MOST of it running the Weather is the one which replaces textures and I cannot use that everything else is fine though.
Archive Invalidation is not listed in the Oblivion.ini for the 360 and if you add the line where it would normally be it is ignored if you make an ArchiveInvalidation file, so texture replacement without an .esp to go with it won't work either. Unless I was just doing something wrong, which I doubt considering I have modded the PC version plenty to know what I am doing. On a side note to that I got the idea to try it by looking at the Fallout.ini from Fallout 3, it does have archive invalidation listed so I am wondering if we can't get regular texture replacements to work or not with FO3.
Mods which include BSA archives can be used without a problem..However you need to unpack the BSA and use it in the textures and meshes folders. When you unpack them it automatically breaks them into the proper folders for you just add them to your game folder like you would on the PC version mod with a textures/meshes folder this also goes for sounds or whatever folders are included.. I have also noticed that anything with a texture replacement requires the texture folders be in the content package and the game folder, I am guessing but not sure that the .esp from the content package uses them from the game folder, but the 360 can only load them from the content package so somehow putting them in both works, i have tried 3 different ways and have confirmed the only way it works is with them in both.
You can get the grass to display much farther if you adjust the grassenddistance and grassstartfadedistance in the Oblivion.ini , you can also turn reflections for statics actors objects and items on and get much better water reflections. If you try too much ini tweaking you will constantly crash the system but these 2 things work well. Basically you see all the grass in front of you and pretty good distances away no more fading in and out , and the water reflects almost everything in your FOV. I am going to put links to my PC plugins from TESNEXUS that shouldn't be against the rules it's not illegal to make the plugins. If you want them in content package form for Jtags ready to go PM me and I can send you a link.
Juggas Pirate ShipJugga's Imperial City SafehouseJugga's Weather OverhaulNewest Video Showing mostly my HDR changes. The Pirate ship is very basic their is not much in it except a chest with some high-level weapons and armor, same with the safehouse you can find the safehouse next to Wawnett inn in the Imperial City. My weather Overhaul changes and certainly improves upon the HDR lighting effects and makes the coloring during all weather types more realistic. I hope someone actually reads this and finds this useful and helps me a little, I seem to be the only one doing this on the 360. When I get a high-end PC you won't see me doing this anymore it will be all PC mods until then expect to see more even if I don't get any help.