I just connected my 360 controler (wired) to my PC as I heard it can still work for games. After connecting it, I went into Printers and Devices, did the check, also checked if I needed to update any drivers, it said they were up to date. Anyway, I decided to play Oblivion and only the left control stick works (nothing else), what's the problem?

Google search says it doesn't have "proper 360 gamepad support."

You mean OBlivion doesn't work properly with it?

Correct, I'm finding Oblivion doesn't officially support it. However, it turns out there are http://pinnaclegameprofiler.com/ for controllers on PCs. I've never tried them, but maybe worth a shot.

EDIT: I'm reading this page with the drivers, full version is $20, I'd stick with kb and mouse imo.

No need to pay for that, the http://vba-m.com/forum/Thread-xbcd-0-2-7-release-info-updates-will-be-posted-here work perfectly for the 360 controller.

http://www.xpadder.com/ It allows you to bind keyboard and mouse commands to a gamepad.

https://code.google.com/p/x360ce/ is good if you're trying to get support for non-360 gamepads with your PC games. Not sure if it'll help you with Oblivion. If OB doesn't support gamepads, then JoyToKey might work - can't go wrong with mimicking keystrokes.

Also this ancient topic may help you. http://www.gamesas.com/?showtopic=565651

I second this. While I didn't get a 360 controller (not paying $75 for it, at the time) I got one for 1/2 that price and use X Padder and everything works great. Still not like on the 360 console but close enough.

MS do a version specifically for Windows, although it's $59.95 MSRP.
http://www.microsoft.com/hardware/en-us/p/xbox-360-wireless-controller-for-windows#details

Which I assume would be fully functional.

It's because Oblivion wasn't made for the 360 controllers like most recent multiplatform games. If you plug in a wired 360 controller for Fallout 3 it will detect it right away, but Oblivion is an older game.

You do know thats a wireless controller, wouldn't solve the OP's problem (who has the official wired controller), and would only make matters worse (as the OP would need to get one of http://www.amazon.com/Xbox-Wireless-Gaming-Receiver-Windows-Pc/dp/B000HZFCT2 for it to work with a PC)

Would the wired version work for Oblivion?

the others have already posted the ways to get a 360 controller to work with Oblivion