Ok...first some background on my issue.

I have had Oblivion for years. Recently I decided to start playing it again. I loaded up my disc and for some reason my computer would not read it. I went through all sorts of troubleshooting, to no avail. So I forked over $14.99 to Steam and downloaded EVERYTHING that is Oblivion...the game and ALL available DLC. (A real bargain!). I was all set to return to Cyrodiil, but it was not to be. After extensive troubleshooting, the last option left was to completely remove all Oblivion related files (old and new) from my machine and reinstall the Steam version. SUCCESS! The game runs great now! But I no longer have all of the mods that I once cherished. I want them back!

So what I need from all you mod veterans is -
1) - Any "Must Have" mod recommendations
2) - Any special instructions for using them with Steam

I am assuming that I will put my new mods in c:/Program Files/Steam/SteamApps/Common/Oblivion/Data. My main concerns are all the Unofficial Patches and OBSE. Are they compatible with running the game through Steam?

Thanks,
TSG