I think Lars isn't a big fan of mods in general (forgive me if I'm just making an inccorecct assumption), based on past conversiations. Not sure why though, though I also do not (well could not) mod Morrowind. But thats ok, because I'll probably be finishing it around when Oblivion comes out, and I wouldn't have time for anything else if I installed some of the mods that are out there.

To go back to system requirments, they have a thread about this in the official forum. You can just ask, and this guy will reccomend, though it's not deiffinetly accurate. For example, I posted my specs:
Computer Model
Dimension 8300 Series
CPU Manufacturer
GenuineIntel
CPU Family
Intel® Pentium® 4 CPU 3.00GHz
CPU Speed
2992 MHz
Front-Side Bus Speed
800 MHz
Currently Installed Memory
1024 MB
Maximum Memory Capacity
4096MB

According the Everest, I have a NVIDIA GeForce FX 5200 (128 MB).
and was told this:

Well, your processor and RAM are fine, but while the FX 5200 is fine for most games, you'll almost certainly want an upgrade for Oblivion. Double-check to make sure you're using an AGP slot, and if that's correct, get an AGP card upgrade; anything from the 9800pro to the X850XT PE, and other cards like the 6600GT in between, will work well.
So, while I unfortuanetly will have to upgrade my card, I at least know it now.