the_FERRET has decided to take this gigantic project in his own hands and has succeeded in making a multiplayer player mod that allows two players to run free in Cyrodiil. He still feels that the project has a long way to go but the next release should have MP up to 8 players and will feature deathmatch and capture the flag.
For more information visit Oblivion's Multiplayer site.
I heard that bethesda was going to start a oblivion multiplayer and have alread put $300 million into it 
