Maxor, sounds like Francesco's Leveled Creatures & Items mod (Fran's)
Mods rock in Oblivion. I've played Oblivion with mods. They make it way better. I hated that "enemies-level-up-with-you" approach, as it really doesn't make you feel like a powerful char.
Mount&Blade has the best combat elements in any RPG, ever. Period. Though it's other elements drew me away from it, and now it's uninstalled in my HD. It's good, but the "staying power" is highly questionable.