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 !