Finally! There's hope for all of you wanting to run The Elder Scrolls: Oblivion on anything below a SM2.0 capable card. It certainly doesn't look as great as it would with a newer graphics card, but if you're just dying to play the game with your current hardware, you do have the option. Head on over to Oldblivion.com to find out how to get the game up and running.
There was a similar mod out soon after the game was released, but there were a lot of graphical glitches with it. Taking a look at the screenshots page though, this new mod seems to do the trick.
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