This is a list of mods that are tested and very practical. If you want anything added to this list, just post it and I can update.
Game Enhancing Mods
CallSteed + Saddlebags (Version 2.5) Official Link TES Link
No Monster Respawn For Dungeons (Version 1) TES Link
Movable Bodies (Version 1.0) TES Link
Turn Off Lights w/ Water Arrows (Version 1.0) Official Link
Kiyoshi's New Vampires (Version 1.22) Planet Elderscrolls Link
Attack and Hide (Version 2.0) TES Link
Quiet Feet, horse/wolf/etc. stutter fix (Version 1.0) Official Link
Cheydinhal Petshop (Version 1.2) Official Link
BT Mod Official Link
No Annoying Messages (Version 1.2) TES Link
Fathis Fix TES Link
Deadlier Sneaking (Version 1.1) TES Link
Deadlier Traps TES Link
Black Jack Weapon (Version 1.0) Official Link
Timemod (Version 1.1) TES Link
AF Leveling Mod (Version 2.03) Official Link
Easy Drop Mod (Version 1.0) Official Link TES Link
Natural Wildlife (Version 1.3) TES Link
No Psychic Guards (Version 1.2) TES Link
Hunters Mod, Natural Wildlife, Damaged Pelts TES Link
Increased Arrow Recovery TES Link
Marksman Velocity (Version 1.15) Official Link
Creature Intensity (Version 1.0) TES Link Oblivion Source Link
Mousewheel Scroll Spells Mod TES Link
Dual Wielding TES Link
Book Placement (Version 1.1) TES Link
Markers for Shrines and Monuments TES Link
Portable Bedroll TES Link
Leveling Shadowmere TES Link
Arena Mod (Version 1.1) TES Link
More Realistic Sneaking + Throat Slit TES Link
Primary Needs Mod (Version 1.0)TES Link
Optimized Polygon Heads (Version 1.0) TES Link
Kals Weapon rebalance mod (Version 1.10) TES Link
Improved Potions of Exploration TES Link
PFM's Unofficial Rarity Patch (Version 2.0)TES Link
Improved Barter Gold (Version 1.0.3)FileFront Link
Inventory Backpacks (Version 0.3)Gaming Town LinkTES Link
Chase Camera ModTES Link
Fast Travel Between HomesTES Link
Security RebalancePlanet Elderscrolls Link
Potion SorterTES Link
Better HorsesTES Link
Fletching Kit TES Link
New Music Pack TES Link
Mannequin Mod TES Link
Thread explaining how to change music Thread Link
Fake HDR for Shader 2.0 Mod TES Link
Improved Light Dragon Armor TES Link
Bone Arrows Official Link
Mighty Bows TES Link
Night Mother Money TES Link
Unofficial Kiyoshi's Vampire Mod Update TES Link
Rain Sound Indoors TES Link
Larger Trolls and Ogres TES Link
Ethereal Summonable Horses (Version 2.6) TES Link
Detect Life Shader Change TES Link
Ranger Companion Mod TES Link
Adrenaline Oblivion (Version 0.1b) TES Link
Goblin War Party TES Link
Daggerfall Books TES Link
Player Faction Dark Gang Planet Elderscrolls Link
Sin's Expanded Light Armor Kit (Version 1.00 Official Link
Magic Words Voice Recognition Spell Software Thread Link
Bank of Cyrodill TES Link
Mighty Magic (Version 1.00) TES Link
More Arena Spectators TES Link
Unlimited Attributes Thread Link
Add Children TES Link
Vampire Alchemy TES Tavern
Elven Cartographer Rapidshare Link
More Katanas TES Link
Custom Map Markers TES Link
Smart Companion Mod Official Link
Dual Wield Steel Weapons Official Link Oblvion Source Link
Spears, Polearms and Off-Hand Magic Staves TES Link
Extra Robe Pack TES Link
Shadowmail Armor TES Link
Fame Indicator TES Link
Pets of Chorrol TES Link
Keyring TES Link
Horses Turn Faster TES Link
Arrow Forge (Version 2.0) TES Link
Recruit NPC's Mod TES Link
Realistic Persuasion TES Link
Mercenary Mod Planet ES
Muggers Added TES Link
On Screen Clock TES Link
The Complete Ranger TES Link
Epic Dark Brotherhood TES Link
Enhanced Tavern and Temple File Front Link
Hilarity Spells (Version 1.1) TES Link
wz_Inventory mod TES Link
Graphics Enhancing Mods
Visually Enchanted Customizer (Version 1.0)File Front Link http://www.tessource.net/files/file.php?id=2398
LOD Normal Map Replacement Mod (Version 1.0)Rapid Share Link
LOD Normal Map Replacement (256mb Vcard Ram or Less) TES Link
Glass Armor Colors Obsidian Link Sapphire Link White Link
Better Gold Planet Elderscrolls Link
Well Used Map TES Link
Better Water TES Link
More Sky Climates (Version 1.0)TES Link Official Link
Colored Map (Version 1.1)TES Link
Jarrod's Texture Enhancing Mod (Version 1)Rapidshare Link
Better Faces (Version 0.6)TES Link
Oblivion Cats (Version 1.2)TES Link
Inebreation Mod (Version 1.0)TES Link
Harvest Mod (3d Removal of Flora)TES Link
Natural Environments (Version 1.0) TES Link
Advanced Water Mod (Version 1.0)TES Link
Real Eyes/ More Eyes TES Link
Dark UI ModTES Link
Shorter GrassTES Link
Improved Lava TES Link
Resized Creatures TES Link
Fog Remover TES Link
Player Lights TES Link
Topographic Map TES Link
Get Wet Mod TES Link
Sharingan Eyes Official Link
Spell Graphics Overhaul (Version 0.1b) TES Link
Far & Away enhanced 3D Distant Lands Thread Link
Companion Share Mod TES Link
Merchant Selling Paintings TES Link
Mod To Remove Parallax Mapping TES Link
Usable Scythe Mod TES Link
DarNiefied BTMod Configs Thread Link
New Ship Skins TES Link
Recastable Summons Official Link
Sunlit Interiors TES Link
Droppable Fading Torches TES Link
Wolf Packs TES Link
Qarl's Landscape Texture Pack Official Link (1024*768) Official Link (2048*1024)
Qarl's Landscape Texture Patch TES Link (1024*768) TES Link (2048*1024)
DoofGrass + Qarl's 1.1 TES Link
Better Staff Textures TES Link
Immersive Interface (Version 0.7) TES Link
Better Forests (Version 0.01) TES Link
Improved Prison Parrallax Mapping Rapidshare Link
Interior Illumination TES Link
Ayelid Ruins Better Textures Rapidshare Link
Almost Everything Viewable While Distant TES Link
Tools
Reskin Tool (Version 0.8)Official Link
Mod Manager (Version 0.5)Official Link
Saved Game Manager (Version 1.6)TES Link
Better Oblivion Windows Icon Official Link
Oblivion INI Tweaker TES Link
Wrye Bash Mod/Save Management Official Link
Tweaper for Oblivion Thread Link
Mod Conflict Detector TES Link
Quests & Building Additions
Underground Assassin's Shop (Version 0.6)TES Link
The Weather Wizard 3Ddownloads Link Rapidshare Link TES Link
Black Hand Questline TES Link
Kumiko Manor (Version 1.1) TES Link
Imperial City Black Market Shop TES Link
Volengrad Castle TES Link
Sentient Weapon Quest Official Link
Altessian Trial Grounds TES Link
New Worlds: Giant Arenas TES Link
Cherydinhal Murder Mystery TES Link
Mehrunes Razor TES Link
Final Fantasy 7 AC Cloud Sword TES Link Alternate Link
Mountain Tower TES Link
Berserk Dragon Slayer Sword TES Link
Silent Hill 2 Pyramid Head Mod Rapidshare Link
Historical Weapons Official Link
Game Enhancing Mods
CallSteed + Saddlebags (Version 2.5) Official Link TES Link
No Monster Respawn For Dungeons (Version 1) TES Link
Movable Bodies (Version 1.0) TES Link
Turn Off Lights w/ Water Arrows (Version 1.0) Official Link
Kiyoshi's New Vampires (Version 1.22) Planet Elderscrolls Link
Attack and Hide (Version 2.0) TES Link
Quiet Feet, horse/wolf/etc. stutter fix (Version 1.0) Official Link
Cheydinhal Petshop (Version 1.2) Official Link
BT Mod Official Link
No Annoying Messages (Version 1.2) TES Link
Fathis Fix TES Link
Deadlier Sneaking (Version 1.1) TES Link
Deadlier Traps TES Link
Black Jack Weapon (Version 1.0) Official Link
Timemod (Version 1.1) TES Link
AF Leveling Mod (Version 2.03) Official Link
Easy Drop Mod (Version 1.0) Official Link TES Link
Natural Wildlife (Version 1.3) TES Link
No Psychic Guards (Version 1.2) TES Link
Hunters Mod, Natural Wildlife, Damaged Pelts TES Link
Increased Arrow Recovery TES Link
Marksman Velocity (Version 1.15) Official Link
Creature Intensity (Version 1.0) TES Link Oblivion Source Link
Mousewheel Scroll Spells Mod TES Link
Dual Wielding TES Link
Book Placement (Version 1.1) TES Link
Markers for Shrines and Monuments TES Link
Portable Bedroll TES Link
Leveling Shadowmere TES Link
Arena Mod (Version 1.1) TES Link
More Realistic Sneaking + Throat Slit TES Link
Primary Needs Mod (Version 1.0)TES Link
Optimized Polygon Heads (Version 1.0) TES Link
Kals Weapon rebalance mod (Version 1.10) TES Link
Improved Potions of Exploration TES Link
PFM's Unofficial Rarity Patch (Version 2.0)TES Link
Improved Barter Gold (Version 1.0.3)FileFront Link
Inventory Backpacks (Version 0.3)Gaming Town LinkTES Link
Chase Camera ModTES Link
Fast Travel Between HomesTES Link
Security RebalancePlanet Elderscrolls Link
Potion SorterTES Link
Better HorsesTES Link
Fletching Kit TES Link
New Music Pack TES Link
Mannequin Mod TES Link
Thread explaining how to change music Thread Link
Fake HDR for Shader 2.0 Mod TES Link
Improved Light Dragon Armor TES Link
Bone Arrows Official Link
Mighty Bows TES Link
Night Mother Money TES Link
Unofficial Kiyoshi's Vampire Mod Update TES Link
Rain Sound Indoors TES Link
Larger Trolls and Ogres TES Link
Ethereal Summonable Horses (Version 2.6) TES Link
Detect Life Shader Change TES Link
Ranger Companion Mod TES Link
Adrenaline Oblivion (Version 0.1b) TES Link
Goblin War Party TES Link
Daggerfall Books TES Link
Player Faction Dark Gang Planet Elderscrolls Link
Sin's Expanded Light Armor Kit (Version 1.00 Official Link
Magic Words Voice Recognition Spell Software Thread Link
Bank of Cyrodill TES Link
Mighty Magic (Version 1.00) TES Link
More Arena Spectators TES Link
Unlimited Attributes Thread Link
Add Children TES Link
Vampire Alchemy TES Tavern
Elven Cartographer Rapidshare Link
More Katanas TES Link
Custom Map Markers TES Link
Smart Companion Mod Official Link
Dual Wield Steel Weapons Official Link Oblvion Source Link
Spears, Polearms and Off-Hand Magic Staves TES Link
Extra Robe Pack TES Link
Shadowmail Armor TES Link
Fame Indicator TES Link
Pets of Chorrol TES Link
Keyring TES Link
Horses Turn Faster TES Link
Arrow Forge (Version 2.0) TES Link
Recruit NPC's Mod TES Link
Realistic Persuasion TES Link
Mercenary Mod Planet ES
Muggers Added TES Link
On Screen Clock TES Link
The Complete Ranger TES Link
Epic Dark Brotherhood TES Link
Enhanced Tavern and Temple File Front Link
Hilarity Spells (Version 1.1) TES Link
wz_Inventory mod TES Link
Graphics Enhancing Mods
Visually Enchanted Customizer (Version 1.0)File Front Link http://www.tessource.net/files/file.php?id=2398
LOD Normal Map Replacement Mod (Version 1.0)Rapid Share Link
LOD Normal Map Replacement (256mb Vcard Ram or Less) TES Link
Glass Armor Colors Obsidian Link Sapphire Link White Link
Better Gold Planet Elderscrolls Link
Well Used Map TES Link
Better Water TES Link
More Sky Climates (Version 1.0)TES Link Official Link
Colored Map (Version 1.1)TES Link
Jarrod's Texture Enhancing Mod (Version 1)Rapidshare Link
Better Faces (Version 0.6)TES Link
Oblivion Cats (Version 1.2)TES Link
Inebreation Mod (Version 1.0)TES Link
Harvest Mod (3d Removal of Flora)TES Link
Natural Environments (Version 1.0) TES Link
Advanced Water Mod (Version 1.0)TES Link
Real Eyes/ More Eyes TES Link
Dark UI ModTES Link
Shorter GrassTES Link
Improved Lava TES Link
Resized Creatures TES Link
Fog Remover TES Link
Player Lights TES Link
Topographic Map TES Link
Get Wet Mod TES Link
Sharingan Eyes Official Link
Spell Graphics Overhaul (Version 0.1b) TES Link
Far & Away enhanced 3D Distant Lands Thread Link
Companion Share Mod TES Link
Merchant Selling Paintings TES Link
Mod To Remove Parallax Mapping TES Link
Usable Scythe Mod TES Link
DarNiefied BTMod Configs Thread Link
New Ship Skins TES Link
Recastable Summons Official Link
Sunlit Interiors TES Link
Droppable Fading Torches TES Link
Wolf Packs TES Link
Qarl's Landscape Texture Pack Official Link (1024*768) Official Link (2048*1024)
Qarl's Landscape Texture Patch TES Link (1024*768) TES Link (2048*1024)
DoofGrass + Qarl's 1.1 TES Link
Better Staff Textures TES Link
Immersive Interface (Version 0.7) TES Link
Better Forests (Version 0.01) TES Link
Improved Prison Parrallax Mapping Rapidshare Link
Interior Illumination TES Link
Ayelid Ruins Better Textures Rapidshare Link
Almost Everything Viewable While Distant TES Link
Tools
Reskin Tool (Version 0.8)Official Link
Mod Manager (Version 0.5)Official Link
Saved Game Manager (Version 1.6)TES Link
Better Oblivion Windows Icon Official Link
Oblivion INI Tweaker TES Link
Wrye Bash Mod/Save Management Official Link
Tweaper for Oblivion Thread Link
Mod Conflict Detector TES Link
Quests & Building Additions
Underground Assassin's Shop (Version 0.6)TES Link
The Weather Wizard 3Ddownloads Link Rapidshare Link TES Link
Black Hand Questline TES Link
Kumiko Manor (Version 1.1) TES Link
Imperial City Black Market Shop TES Link
Volengrad Castle TES Link
Sentient Weapon Quest Official Link
Altessian Trial Grounds TES Link
New Worlds: Giant Arenas TES Link
Cherydinhal Murder Mystery TES Link
Mehrunes Razor TES Link
Final Fantasy 7 AC Cloud Sword TES Link Alternate Link
Mountain Tower TES Link
Berserk Dragon Slayer Sword TES Link
Silent Hill 2 Pyramid Head Mod Rapidshare Link
Historical Weapons Official Link