Make a folder C:\es. Browse to your Steam\\steamapps\\common\\ and Cut the Oblivion folder. Paste it in C:\es so that you have C:\es\\Oblivion\\. You can then uninstall the game later in Steam itself.
Run Regedit and browse to
[HKEY_LOCAL_MACHINE\\SOFTWARE\\Wow6432Node\\Bethesd a Softworks] (this may be in a different place on your machine, this is for Windows 7 64bit)
Under Oblivion, edit the Installed Path variable.
Why? I may have overlooked this, but I dont see a reason to need to move it away from Steam. The way I installed OBSE, OBSE has to have the steam community on for it to load. Now I am afraid that OBSE will not load and I really have no idea how to check to see if it is.
EDIT: as a matter of fact, I cannot even get Oblivion to load now. Yes I did change the registry to point to D\es\\oblivion\\ Wont load via OBSE, oblivion launcher, and of course Steam.
Edited by broddam - 8/18/11 at 8:01pm