1. What does this mod do?
This mod changes most of the item lists for armor and weapons that normal NPCs (not monsters or dremora) get their equipment from. Now, most bandits and marauders should use the lower levels of equipment, not all Daedric and Glass, no matter what your level is. Scaling hasn't been removed, or really changes, Ebony still doesn't show up until level 15, but now there is no point in which NPCs will be using only Ebony, or only Daedric. There will always be at least ~50% using Iron and Steel weapons and equivalent armor. Also, no this mod greatly increases the rarity of Daedric armor, Daedric weapons, and glass armor. Normal NPCs no longer spawn with it, it is only available in loot and powerful NPCs or monsters like Dremora.

2. Does this mod work with saved games?
I'm not sure. I don't think there would be a problem, but I would probably backup my save first. Don't hold me responsible if you lose your 200 hour character.

3. Does this mod work?
It seems to. I havn't done much testing. That's why I have it listed as Beta.

4. Installation.
Drop it in the Data folder (probably C:\Program Files\Bethesda Softworks\Oblivion\Data). Select it in the "Data Files" menu accessed from the Oblivion launcher, and there you go.

5. Future plans
If I have time, I would like to do several things. First is removing level scaling, making it so equipment rarity really doesn't change as you level. I would also like to create a very small chance of some NPCs (Boss characters mostly) having Daedric equipment.