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My pc specs are :-

P4 516 2.93 Ghz
1 GB ddr 333 mhz ram
AsRock 775-dual 915gl mobo.
nvidia geforce 6600gt 128 mb.

So,will i be able to run Oblivion and if yes then at what settings.

I by 'full' you mean completely tweaked out with all in-game quality settings on max, all settings in the nvidia control-panel set as high as possible and all sorts of high-res texture packs installed, then no, your computer wont run it.

Edit:

if you upgraded your graphics card you'd be fine

You should seriously learn to read the stickies

http://www.techspot.com/vb/topic61153.html

Also you'll be able to run Oblivion with those specs at atleast medium with 1024x768 ( which still looks awesome )

He'll have some lag, and another gig of RAM would do the game a little justice.

No it wouldn't. I got no difference recording with FRAPS on the same run through the same area on the same settings with 2GB as I did with 1GB. In fact, because of the forced 2T command because of my 4 sticks of RAM, I got slightly lower on the 2GB run. Oblivion doesn't need 2GB really.

so at medium setting tell me the resolution

that passes the pc with minimum recommendation it does not say the approximate fps that i will get and still the public answer is the best

i manage to get ~25 fps in need for speed most wanted in 1024*768 resolution with all the details to high and aa 4x and anisotropic filtering enabled,the reflection rate and road reflection are only low.

Well if you pass with minimum then you'll be playing with minimum settings with good FPS or High settings with bad FPS, you're choice...

Also I have a X1650XT pro AGP x8 and I run it maxed out with 30 avg. FPS ( HDR instead of AAx6 ), since my card is more newer I guess you'll be getting around 15-20FPS at medium-low ( Like shadows turned off ) with 1024x768

i play oblivion at BLOOM and AA X 2 with medium details and it runs smoothly