I thought that in Oblivion when you had, for example, a grand soul gem with a common soul in it, and you then killed something with a higher level soul(grand), that the grand gem's soul would be replaced. This is currently not the case and I didn't realize it until wasting 4 grand soul gems with petty-common souls. Very disappointing. I'm sure it's going to be an early release mod once the CS is out, but I just wanted to put the request up in case noone was going to do it.