Hehe, looks really interesting. I would love to see the view from the top :3 (speaking of which, you would probably need to make LOD meshes for this so that it can be seen from far away)
In essence, take the object you want to be able to see from a distance (in this case your tower) and create a low resolution version of the model, and remove all extraneous data from it (like collision data and details that you wouldn't be able to see from a distance anyway). Then name it whatever the mesh's name is with "_far.nif" on the end.
Although...hmm...I guess since it's using all objects that are already in the game, then just a mod like RAEVWD (either here http://www.nexusmods.com/oblivion/mods/20053/? or here http://www.nexusmods.com/oblivion/mods/24701/? ) should work as long as it has distant meshes (the _far meshes) for each of the object pieces you used. Then you just need to run TES4LODGen (http://www.nexusmods.com/oblivion/mods/15781/?) and it should generate a .lod file that tells the game to use the distant meshes.
I hope that helps, and I'd be glad to help with anything if you need.
This reminds me of Devil May Cry's Bloody Palace, but with an interesting twist. It would be great to see community made equipment, spells, and characters in this tower. Especially weapon and armor mods since most are not properly show cased.
Ask equipment and character modders to help you out, or just for permission to use their stuff.
That's my idea have you seen Dragon ball the first dragon ball where goku goes into the red ribbon tower facing enemies in each floor, well i would like to recreate something like that and in each flor give treasures after defeating a boss or something, in the last flor i want it to be really special, it would be som kind of Godly realm i just need to create the NPC is just that I don't know much of scripting, but I'll do my best.
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(speaking of which, you would probably need to make LOD meshes for this so that it can be seen from far away)
Although...hmm...I guess since it's using all objects that are already in the game, then just a mod like RAEVWD (either here http://www.nexusmods.com/oblivion/mods/20053/? or here http://www.nexusmods.com/oblivion/mods/24701/? ) should work as long as it has distant meshes (the _far meshes) for each of the object pieces you used. Then you just need to run TES4LODGen (http://www.nexusmods.com/oblivion/mods/15781/?) and it should generate a .lod file that tells the game to use the distant meshes.
I hope that helps, and I'd be glad to help with anything if you need.
Ask equipment and character modders to help you out, or just for permission to use their stuff.