I had Oblivion for PC before, but I've been buying a lot of my games again on Steam, so I rebought Oblivion.
I copied every one of my mods and program files from Oblivion to its new Steam directory, but the OBSE refuses to load under Steam and as far as I know the Morrowind - Cyrodiil transport mod doesn't work at all. I've installed the latest version of Morroblivion and still nothing.
(and the Oblivion Mod Manger doesn't help, seeing as how it uses OBSE to start Oblivion)
#2
Steam - Oblivion Transport Mod and OBSE problems
It's the official latest
What I mean is, did you
What I mean is, did you install OBSE correctly - there are different installation instructions for STEAM.
IF YOU ARE USING THE STEAM VERSION OF OBLIVION:
1. Copy obse_1_2_416.dll, obse_editor_1_2.dll, and obse_steam_loader.dll to your Oblivion directory. This is usually "C:\Program Files\Valve\Steam\SteamApps\common\oblivion".
2. Ensure you have enabled the Steam community in-game, or OBSE will fail to load. Go to Steam > Settings > In-Game and check the box marked "Enable Steam Community In-Game".
3. Launch Oblivion via Steam or by running Oblivion.exe. OBSE will automatically be run along with Oblivion when launched. To disable this, rename or move obse_steam_loader.dll. You do not need to use obse_loader.exe unless you are running the editor.
I did all of that.But no dust
I did all of that.
But no dust storms or levitation spells.
But apparently there's a completely different build for the OBSE that I'm supposed to use for Steam.

#1
A quick Google found this ..
http://forums.steampowered.com/forums/archive/index.php/t-900993.html
The other choice would be to delete steam and install Oblivion as it was intended.
:)