hmm.. I think the problem has been solved by doing several things.
I uninstalled one of the nvidia drivers I was trying to use to solve the problem. I've tried several. BUT, this time I used a program called "Driver Cleaner Pro" before I installed nvidia driver 93.81.
Afterwards, I still had ribbons, but not as bad, and just on the water while on watch. Then I remembered to uncheck "Show GPU Load Balancing" from the nvidia control panel. A cure for an Oblivion problem.
Now I seem to have NO problems, with the game video options set to high. Hopefully this problem is cured, and maybe you guys that are having similar problems can try these steps.
*crosses fingers*
Thanks again guys.