Hello ASK_Story!
Your experience with Oblivion will depend on your personal notion of waht is "enough" for YOU. Note, that it's YOU that matters most, not what someone else says.
See... I played oblivion on my old AMD 3200+, with 6600GT and 1gig ram. It ran horrible on stock settings, but when I OC'd the card, and modiefied the ini files according to online guides to reduce the grass, and some other things, the game ran at an acceptable speed. It was fine, but eventually I convinced myself that once I get a better card someday, my experince will be a lot better.
That day came about 5 months ago, when I got my 8800GTS 640mb. I gotta tell you that the GFX are indeed notably better. Not MUCH better, but you can indeed SEE the difference. Most of the difference comes in the form of eye candy around you. The sky becomes much richer and more realistic... The water is so much better that there's no comparison. The grass at full settings is not essential, but it really adds to the experience. The trees just spring into life and the whole world around you becomes alive all of a sudden.
If you can ignore the world around you and you only care about your character and the actual combat, go for it now. If you want to get the full experience of everything Oblivion has to offer, get a 8800GTS.
I'm dirt poor. I'm a bum who's old enough to have a family of my own, yet I still dont have a job, due to some bad issues in my life. Still I am usually able to save enough $$$ for a brand new rig every 2-3 years. What allows me to do that is the fact that I ALWAYS build my computers and NEVER buy them from companies/people/retailers. I order parts online, and my computers turn out to be a lot cheaper than Dell, Alienware, and the others.
A Dell with a comparible setup to my PC, despite having a larger hard drive and an overall better cosmetic look costs over $2000, when it only cost me about $1200 to build my computer. Learn to build your own rigs, save up some money, and you'll be a much happier man. Good luck!
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