This worked for me: Found out there's a bug in oblivion if you are running on a newer system that has a usb infrared remote sensor plugged into it that disables the tilde key, if you've got one of these devices plugged in, just unplug and restart oblivion, tilde will work...
you dont need to go to the ini file to change the controls. You can just do that from the options menu. I also suggest you assign use to the e button and jump to the space bar
