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After another fight with unreliable performance of my system I traced the issue back to a faulty USB card reader.

I still experienced too many crashes to desktop playing the game, probably a bad mod or issues in saved game, so I waited a few months to dull the pain of starting over yet again.

I had to review the list of plugins, keep only the essentials ones and check load orders again. Then install game and official updates first - save the Oblivion folder at this point in case you need a fresh start. It is easier to copy this folder over than having to go through all the install CDs again.

Then create a saved game in the the prison cell and use it as a reference game for future plugins.

At this point, create these folders in your Oblivion/Data folder : Install, Readme, Unused 

Break down your plugin install files in categories:

- cosmetic, UI, textures (backup visually enhanced folder)

- gameplay, spells, land

- weapons, armors, etc

- quests, companions

Use Oblivion Mod Manager (OBMM) and test your game after each wave of installation to validate your load order. And remember to read all readme files !