Well I haven't been able to find anyone who's been able to figure out the right settings for oblivion on 3d analyzer, but i finally figured it out myself. just check the very first box under hardware limits (cap bits) which is emulate hw tnl caps. i didn't check anyhting else and it worked.

go to oldblivion's webeite (oldblivion.com?) and they have faqs and they tell you what to do so that the sewers wont freeze. You dont have to have oldblivion. And it turns water purple. but it works.