K pretty new to the whole modding in Oblivion. I can Run Vanilla Maxeed out (x4AA) with no drop in FPS in any places and it idles at 60, with x8AA it doesn't go below 30 but in random areas.
So basically which are the most reccomended mods in this list that cover:
Environment, Lighting, Weather, Characters and buldings? this is a great list but i don't know which ones to choose.
And I would also liek to know a little more about editing .ini to get better visuals in Oblivion.
Hi
Jassinlive 
Weather mods:
Definitely http://www.tesnexus.com/downloads/file.php?id=18305, no contest.
It actually incorporates a number of the others within it giving a much more diverse set of weathers. Then add the fact that it also includes sounds for the weathers in buildings (much trickier than it sounds) and "natural interiors" that means you can actually look out through the windows! (very cool) PLUS a Real lights feature making lighting much more realistic! And it is still a very much active mod, so updates and improvements are always coming out.
With that are a number of other mods, which are detailed in its readme, which can be added as well to make the experience even greater. Such as "storms and sound" and "Animated Window Lighting System and Chimneys " and the "Rainbows In Tamriel" mod mentioned in this thread.
Lighting:
With those above you are already set. Use the "Real Lights" that comes with "Weather -All Natural" (with or without the rest of the mod) as it doesn't have the problems the original stand-alone version has.
A good realistic darkness mod (adds to the realism) is http://www.tesnexus.com/downloads/file.php?id=22819
Characters:
First I would check out
http://www.tesnexus.com/downloads/file.php?id=21104
Which does a whole bunch of things. Including making characters look a whole lot better, and adding hairs and eyes etc.
There are a few body mods out there (for both player and NPCs)
For males it's pretty much "Roberts Male Body" or nothing.
For females there is more options, but personally I prefer the http://www.tesnexus.com/downloads/file.php?id=15802 along with the http://www.tesnexus.com/downloads/file.php?id=24078
I would also recommend:
http://www.tesnexus.com/downloads/file.php?id=19370 (this link is to the compilation OMOD - almost up-to-date - but look around for it's Compatibility patch page and it's various mods, and the thread for it here.)
Which is actually a project of a bunch of mods that improve the landscapes (also adding nifty things) to a whole lot of the areas.
http://www.tesnexus.com/downloads/file.php?id=16513
Really improves the look and feel of the cities in the game.
And This http://www.tweakguides.com/Oblivion_8.html should help for the .ini settings.