Hi everyone. First off, I want to say this is an amazing project, and you have my profound thanks for all the hard work you've done.
So I've gone through the installation in the text file, did everything in order. The mods are loading in order as well. When it gets to the character creation screen, it acts normal, but the majority of the background is purple. Its like the ship textures didn't load correctly, and it's just showing purple. So I make my character, and continue the game. Still inside the purple ship, the box and sack in front of me are normal colored. I click okay on the four dialogue boxes as they come up, and after the last dialogue box Oblivion just shuts down. Anyone have any idea on why this is happening? Here is my mod order:
Oblivion.esm
Morrowind_ob.esm
Unofficial Oblivion Patch.esp
DLCShiveringIsles.esp
UnofficialShiveringIslesPatch.esp
Vvardenfeel_Imports.esp
MorrowOblivion_WorldTransport.esp
DLCHorseArmor.esp
DLCOrrery.esp
DLCFrostcrag.esp
DLCThievesDen.esp
DLCVileLair.esp
DLCMehrunesRazor.esp
DLCSpellTomes.esp
Knights.esp
Any help is greatly appreciated.

same problem
Just posting here to echo this bug - exact same problem. My load order is -
Oblivion.esm
Morrowind_ob.esm
Unofficial Oblivion Patch.esp
DLCShiveringIsles.esp
UnofficialShiveringIslesPatch.esp
Vvardenfeel_Imports.esp
MorrowOblivion_WorldTransport.esp
I did have Oblivion, Nehrim, Morrowind etc all installed so I uninstalled them all then rebooted the machine, then installed Oblvion, then installed Morrowind etc, then followed the video instructions. Everything appears to go well, then I end up with the same problem as above.
Only difference was that Morrowind is in "Program Files\Bethesda Softworks\Morrrowind" because I couldn't redirect the install directory for Morrowind - Oblivion is in "C:\Games\Oblivion" as recommended. Is this an issue?