Can anyone help me figure out the the issue is?

Here is the debuglog.txt.

Thank you

We may need more MiniDumps

But looking at the log, I would recomment to download the latest updated drivers for your Sound card and Video card.

Then fully uninstall your ATI video program from add/remove programs
Possible leave the sound program installed (some are ok some are not with updating)

Then after restart, update both Video and Sound drivers fully (some adjustments may need to be done as well after that - ie screen settings so forth by you)

Reply back if it helped resolve the issue.

I Updated every MB driver I could find.
My sound card in in MB I updated It and Also downloaded and installed the Omega ATi drivers.

I played Oblivion all night with not Minidmps.

I will let ya know if i run into any other issues.

Thanks
Glenn

Thanks for the update :)