A 3700 is enough CPU for Oblivion. My opty 146 at 2.5 does fine, although I usually run it at 2.8.
Oblivion is all about GPU and video RAM.
The benches all over look slightly low. I read all the benches before I bought the game and was worried I wouldn't be able to play it.
I have a 6800 vanilla with all distant stuff on, Large textures, no Bloom, no HDR, other settings just on the low side of the 'medium' range and the game looks pretty good and is very playable-- most of the time, anyway-- but large outdoor areas and lots of creatures on screen dip me into the teens-twenties. At 1024 x 768 outdoor areas are in the 30-40's and regular dungeon crawling is in the pleasant 50-70 fps range.