This may sound like a silly question but If I use this mod and explore beyond where the game wanted me to be, do I risk falling off the world or something to that effect?
I suggest re-installing the game (and Steam if you use the Steam version of Oblivion) to C:\Games. Follow the Oblivion re-install procedure link from my previous post.
UAC is a Microsoft security feature introduced with the Vista operating system and continued on to Windows 7. It prevents 'unauthorized changes made to files in certain protected folders ... C:\Program Files (x86) is one of those folders. Modern games use the methods provided by Microsoft to work with UAC. Oblivion is an old game and hasn't any way of working with UAC (Oblivion was last updated long before Microsoft even conceived UAC ... WinXP had nothing like UAC). As long as Oblivion is installed in C:\Program Files (x86) you will continue to have issues.
Editing Oblivion.ini is as simple as I outlined. If you try that and the change doesn't 'stick' then all I can think of is UAC interfering.
Could be that User Account Control (UAC) is interfering with any edits to your Oblivion.ini (either by this OMOD script or your own efforts). It's known that UAC can cause problems with the game installed in folders protected by UAC such as C:\Program Files (x86). The standard advice is to uninstall the game and re-install in a folder outside UACs clutches, most often C:\Games is recommended. What I'm not sure about in your case is this ... even with the game installed in C:\Games your Oblivion.ini will still be located in 'Users\[username]\Documents\My Games\Oblivion', which I believe will still be a protected location as far as UAC is concerned.
The standard manual way of disabling borders is to open Oblivion.ini in Notepad, search for 'bBorderRegionsEnabled', change the 1 to a 0 and save the file. If I'm recalling correctly you've already tried that to no avail. If that's true the only other advice I can give is re-install the game outside of C:\Program Files (x86). Bben46 has a wiki article that can help get the job done correctly: Oblivion reinstall procedure. If you use the Steam version of the game don't miss the link near the top of the page about moving your Steam install location, and don't skip the registry cleaning step ... it's important.
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Editing Oblivion.ini is as simple as I outlined. If you try that and the change doesn't 'stick' then all I can think of is UAC interfering.
The standard manual way of disabling borders is to open Oblivion.ini in Notepad, search for 'bBorderRegionsEnabled', change the 1 to a 0 and save the file. If I'm recalling correctly you've already tried that to no avail. If that's true the only other advice I can give is re-install the game outside of C:\Program Files (x86). Bben46 has a wiki article that can help get the job done correctly: Oblivion reinstall procedure. If you use the Steam version of the game don't miss the link near the top of the page about moving your Steam install location, and don't skip the registry cleaning step ... it's important.