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Oblivion Mod Manager (a.k.a. OBMM Oblivion Mod Manager) is the fantastic work of Timeslip. Not only can you install and organize mods, but also you can organize your load order and implement multiple types of archive invalidation, with ease.
Oblivion is my favorite game of all time and I put over 100 hours of gameplay in to it. That's impressive because I maybe buy 2 video games a year and hardly ever play, I actually haven't touched or bought a game in over a year but I'm getting a ps3 just for skyrim because my xbox broke so long ago.