Everything was fine a while ago when suddenly my oblivion grass and terrain started looking all weird.  I have QTP iii and lod replacements and all graphic enhancers, and my oblivion used to look awesome when suddenly i noticed all the grass divided itself into distinct blocks and squares. 

Have you done your archive invalidation? OBMM will do that for you.
 

Dude that is weird. I don't know what to say other than maybe you downloaded a new mod and it's conflicting with your old ones? Maybe?

All right sorry got the problem solved, i re transferred the meshes and texturesfolders and deleted the .ini.. Don't know which one solved it for me. This is how the pic at the top with four blocks  looks now: 

@Jim_uk:

Well that was an odd one, maybe it was something in the ini.

I had the exact same problem.

It was fixed changing the iMaxLandscapeTextures in the Oblivion.ini file.

It was 1, changed it to 8, everything was fine.

You can use a bigger number.

Thought I could post it here since this post appears on google and lot's of people tent to come here after this answer!

Thanks!

@dejaime: @armaan8014: Armaan still appears to be a user here, so perhaps you will get an answer sometime in the near future. Stick around and enjoy GiantBomb! :D

If you guys ever get curious, try changing your iMaxLandscapeTextures to 1 inside your ini, just to see how it looks like and that it is the problem.

@Baillie: Thanks for welcoming me sir!

@dejaime: I've just re-read your reply. You're actually giving a solution, my bad!