The best and most ideal xpadder settings for the use of an xbox 360 controller in Oblivion on PC.

If you have a problem with movement and the left analog stick,  change bUse Joystick=1 to 0 in both the Olbivion.ini in my documents and Oblivion_defaults.ini in the Oblivion install directory. 

Forward on the left analog stick toggles caps lock on and off which determines whether you run or walk. That is as good as it gets due to the way Oblivion on PC is designed. It works fine once you get the hang of it.

Pressing up on the d-pad when in the inventory selling items will then allow you to press x to sell items quicker.

The back button is used for the wait menu as well as for dropping inventory items by pressing back + right trigger when in the inventory, and also for placing map markers by pressing back + right trigger on the map.

VERSION 2.0
Version 2.0 has some improvements and tweaks.