For Shademe subscribers only. Select for your rig. Unless there are major performance issues, med or high is preferred.
Usage: Copy from archive to \Oblivion\Data\obse\Plugins\.

Notes:
For anyone who does not use Oblivion Reloaded there may be problems with actor self shadows. Use this in Shademe.ini:
[SelfShadows::ExcludedTypes]
Interior=69
Exterior=69

Grass shadows are terrible for everyone so it's recommended to switch off in Oblivion.ini [Display] section:
bShadowsOnGrass=0

Click here for more details.