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Damage Rebalance
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REQUIREMENTS------------------------------------------------

Oblivion Script Extender (OBSE)

DESCRIPTION-------------------------------------------------

Oblivion's difficulty settings are trash. You can either have
enemies that die in a few hits and deal absolutely no damage,
or you can have enemies that actually deal damage but take 5
minutes of hacking away to kill. This mod is an attempt to fix
this by dramatically increasing the damage the player takes,
allowing you to reduce the difficulty to the point that enemies
are reasonably tough. 

INSTALLATION, SETUP, AND TWEAKING---------------------------

Before installing this mod, play around with the difficulty
settings in Oblivion so that enemies die in a reasonable 
number of hits. Unless you think 20 hits is reasonable,
enemies are probably barely scratching you. Find an enemy, 
save, and then let it attack you, paying attention to how
much damage each attack does. Now, quit oblivion and merge
this mod's data folder with Oblivion's data folder and
activate DamageRebalance.esp in your load order. Launch
Oblivion, load the game you saved, wait a few seconds, and
check the console. If the mod is working, you should see
"Damage Rebalance Initialized." Now let the same enemy attack
you. It should do significantly more damage now. If you want
to increase or decrease the damage, go to Oblivion/data/ini
and find DamageRebalance.ini and change the number in front of
"set dmgInitQuest.DamageMultiplier to" to whatever you want.
The other two settings are for the threshold. If the damage
dealt to the player would be above the threshold if it were
multiplied by the damage multiplier setting, the plugin
instead uses a different formula that scales the damage more
slowly (at the rate of the threshold multiplier). This is
an attempt to compensate for the fact that some enemies deal
disproportionately high damage, and can kill you in one hit
when the damage multiplier is set such that most enemies do
reasonable damage.