i heard npcs in oblivion scale a lot...
do i need to use smithing, etc. in oblivion or can i just.. play?
Just play.
One of the difficulties "Oblivion" had was that "Morrowind" gamers who loved "Morrowind" so much knew it like the back of their hand suddenly had the tables turnd on them.
"Oblivion" put them in a position where they didn't have the comfort of knowing what the "best" everything was.
So you play and discover it.
The game is designed to play the way it does on purpose so don't go panicking.
If you can play "Skyrim" you can play "Oblivion" no problem.
Many things will be different.
Enjoy the experience. That's what it's all about.
Azrael
The Nord witht he Sword