Oblivion graphics issues

I've searched all over the internet for a solution to my problem, but it seems like my issue is unique.
When I first bought the game about a week and a half ago the game worked great. A little choppy, but nothing major. Everything was going great for the first few days, but then on the third day when I opened a saved file the world was replaced by a blue haze. My health bars and stuff were there but my character and the rest of the world were gone.

Anyone know how to fix that?
 
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