iainmet: The game itself was mainly aimed at the 360 so has all the bloom lighting and lower textures. The NPC's can look a bit goofy at times!
First off I would grab OBMM (Oblivion Mod Manager), this makes life much easier when using multiple mods as it knows about incompatible parts etc and can disable little bits if they clash, at first it looks a little complicated to use but the mods usually come with instructions on what to do with the specific mod and OBMM. Works much better than the mod manager built into the game on the startup splash screen
For a start I would get Quarls Texture pack, it retextures virtually the entire game and brings it up to modern PC standard, looks absolutely amazing.
For the Faces there is Natural faces and also TNR Complete which does all the NPC's, personally I think this second one is better.
Natural Faces :
http://oblivion.nexusmods.com/mods/1965 TNR Complete :
http://oblivion.nexusmods.com/mods/16843 There is also Beautiful Women and Handsome Gents :
http://oblivion.nexusmods.com/mods/17189 Those links have screenshots and instructions with download links, bear in mind that most of the mods actually require Shivering Isles expansion. Another thing worth mentioning is that OBMM is compatible with all versions of the game whether it is disc based or Steam.
Its literally down to personal preference with the one you choose. You could grab all of them and try each one and see what you like best, just enable / disable them in OBMM.
Thanks!!! This is the post that I needed, but I can't find Quarls texture pack...