NOTE: Although I found this bug on a Breton, I believe that many weaker races may experience this.
PRE-S:I seriously cannot believe that I just typed a seven or eight paragraph post to forget my password and lose it... I hate my life.
WHAT HAPPENED: I came back to oblivion for the first time since about a month after it's release on a new 360 Username. Of course I wanted to make a new char to get the achievements and get a feel for the game again so I decided I wanted a Mage/Assassin character to work with. I chose a breton to start on.
I followed the guards like a good prisoner and watched them risk their lives fighting assassins. Everything was nice and happy until the guards left and the rats came. All hell broke loose, sort of...
The first rat lunged and I swung in response. Instant kill, no problem. The second rat hit me by surprise however and what happened next made me break my controller. Being that I was a Breton my character was naturally weak to physical contact and so I was flung back and stunned for the course of a full half of a second, no biggie.
What I didn't anticipate was that the rat was juiced up on radioactive waste and was able to attack me again before I recovered from the stun. Well that really sucked because he stunned me again. And again. And again...
During this stun I was unable to attack, jump, cast, move, or even look around at my soon-to-be grave. When I hit "RT" to attack it registered in the game but I could not attack meaning I couldn't even switch between weapons that I couldn't use. I wasn't even able to die in style now...
Die is exactly what I did. Being as calm as I was (after killing the neighbours' dog with a meat cleaver) I simply washed my hands and cleaver and lowered the difficulty. Now I'm BOUND to win. Unfortunately, I wasn't "BOUND" to do anything short of die except since the difficulty was lower, it took a LOT longer. After returning from my other neighbour's house, I figured I should go on Gametalk. Lucky for me it was down until 9:30 PST (lucky because under normal conditions my computer would contain a fire-bomb and I would have been killed.)
I trecked back to my Oblivion and found the most obvious solution ever.
SOLUTION:
1. Optional: Goto the 360 dashboard and delete your saves on your Breton/Weak Char.
2. Make a new char that is either a Red-Guard, Orc, or Dark-Elf.
3. Destroy everything to the sign selection, choose the steed.
4. Continue to the class selection and choose something with decent agility.
5. Continue to the end of the sewers and at the end choose what you really want to be.
WHY THIS WORKS OUTSIDE OF THE SEWERS: Rats aren't powerful but they attack rapidly which stuns you, people attack more slowly and but with more power so even if you get stunned you have a breif time to recover before receiving another blow to the head with a warhammer.
PS: I know most people know this bug and way around it but I figure it will help the newbies (noob is an offensive word.) please don't rate this tip because I know most of you know it and will hit 0/5 anyways.