Bethesda released the v1.1 Oblivion patch for the PC today. The Xbox 360 patch (via Xbox Live) should follow tomorrow. The patch fixes a number of bugs that range from nuisances to issues that render the game unplayable, or at least, prevent players from advancing certain quest lines. The patch also "corrects" these popular glitches:
Fixed infinite gold issue on some dead NPCs
Fixed an issue with duplicating items and unequipping the bow
In 'Till Death Do They Part' (quest), the Count no longer rewards player with gold more than once
Tip: Before you update, consider cashing in on the Count's generosity or Dorian's deep pockets. And use your fleeting "cloning magic" to stockpile those potions and soul gems.