I was going to include this in a longer bug report, but it's occurred so frequently and caused numerous gameplay issues that I decided to report it separately. Ascended Sleepers cause several graphical problems when killed, due to their death animation. Most noticeably, all dynamic lighting gets deactivated. Torches and Light spells stop working, and spell effects no longer illuminate the area. The interior map (F4, leftmost tab) also stops working, and just shows a blank page. The only workaround I've found is to save the game, quit to the main menu, then reload.
The death animation itself also has some strange things going on with it. The sleeper's body portion will stretch outward to infinity and then fade from sight, but it seems the game engine is still treating it like it's there, since this will cause slowdowns in performance if it happens outdoors. The slowdown is so bad that every normal attack I attempt turns into a power attack due to the processing delay. About half the time, the sleeper's skull will sink through the ground and become inaccessible, similar to the glitch in daedric ruins where enemies fall through the floor when killed.
I tried searching for possible fixes, or if this has come up before. I saw that this was posted in 2011, but the file no longer exists.

Wow. It sounds like your
Wow. It sounds like your Morroblivion set up is possessed. For me, when an Ascended Sleeper dies, he just stops moving for several milliseconds, a cheesy "smoke" animation plays, his body fades away and his skull falls to the floor ground and stays on the ground (no sinking). The fact that your dynamic lighting is so seriously affected, makes me think that the graphics pipeline gets broken. The interior map no longer working could also be a graphics (shader) problem. The stretching of the body sounds like the NIF animation rigging is broken (maybe file corruption). That may also explain the slowdown. All this together could be explained by a buggy graphics driver or incompatible hardware. Starting with the very basics:
1) Please tell us your computer hardware specs: Brand (if any), CPU model and speed (+overclocked or not), RAM amount, Graphics card brand, model and speed, graphics device driver version... harddrive is probably not too important here as long as you have at least SATA level technology and at least 5-10 gigabyte of free space.
2) Please list your mod load order as well as any ESP-less graphics replacers you are using.
3) Are you using an ENB? If so, what preset? Are you using custom settings?
4) Are you using Oblivion Reloaded? What shaders? settings?
Also: upload the "RendererInfo.txt" file in your "My Documents\My Games\Oblivion" directory.