It seems as if most, if not all of those posting in this topic are new to Oblivion. I played this game extensively on an XBOX 360 until I quit back in July of 2006. I got as much as I could out of the game, and my character was a powerhouse! I was very frustrated early on when it became evident that there were lots of bugs and that many quests were broken, and the patch that fixed many of them was not made available until I was well past every single one of those events:
http://www.elderscrolls.com/downloads/updates_patchnotes6.htm#5
I was not about to start over, so I kept going, trying to explore as much of the countryside, and close as my Oblivion Gates as possible, before completing the main quest. It was then that I ran into this problem:
Slow/Frozen Doors, Fire, Spell etc. animations, Jittering Doors/Effects/Objects-pos FIX
http://www.bethsoft.com/bgsforums/index.php?s=&showtopic=561101&view=findpost&p=9271517
Apparently there was a sequence of bytes in the coding that increased incrementally in value, and most speculate that it is based on the amount of time played with a particular character. Once this sequence of bytes reaches a specific number, I, and many others began experiencing game breaking experiences. The link that I posted immediately above is to a post placed by a moderator on the Hardware and Software Issues of the Bethesda Game Studios Oblivion Forum. It explains the problem in great detail.
Some ingenious forum members figured out how to fix a game save on a PC, but apparently only Bethesda can fix it on the XBOX 360. I went to some expense and a lot of wasted time trying to fix my game save only to end up with 'corrupt' files. I was not able to finish the main quest, and it was then that I unloaded my (second) XBOX 360 and the third copy of the game.
Although Bethesda has not addressed this issue, or even acknowledged that it actually exists, I certainly hope that those of you playing on the PS3 don't run into the same problems that I, and many others did.
Based on the comparison videos I've seen so far, it appears as if the game at least looks quite a bit nicer on the PS3 than it does on the 360, but I'm still going to wait before deciding on whether to buy it or not.