Oblivion Xfire fix
After a lot of searching ,(which involved this article by WoogieMonster) I decided to try to find a way to fix it.
I finally found a method, which was posted in the xfire forums. Either way, I've made a video to help anyone who is still having issues. Typed instructions below.
1. Open your Oblivion folder (Generally C:\Program Files\Bethesda Softworks\Oblivion)
2. Right-click on Oblivion.exe and select Properties...
3. Open the Compatibility tab.
4. Check the 'Disable Visual Themes' box. Apply and hit OK. You're done!