Aliasalpha: presumably the patch doesn't help you run it. Whats the problem exactly? Not loading at all? complaining about drivers? running at 3fps when it's having a good day?
I can run it up till the One Year Later part after mucking about with ini files. You have to turn the characters heads off. My integrated card card supports 3.0 shader models and runs Oblivion just fine in medium settings. So I am thinking there might be bugs in the code responsible for either the characters' heads or in the different shader packages. Bethesda seems content in fixing quest related problems and stuff like that but I have no idea whether they are looking into fixing the shader problems people are having.
Sad to say but this game is actually buggier than Daggerfall and that one had you randomly falling through the floor of a dungeon and other odd things but one could still play the game after a reload.