quote Number6ofthe6Beast6

Oblivion > Morrowind

That just about sums it up. I played Morrowind extensively (for probably hundreds of hours more than I should have) and I can say this above Oblivion so far:

* It's larger (geographically it's almost twice as large, not including dungeon interiors).

* The graphics are cutting edge. Morrowind was a beautiful game that was ahead of its time in my opinion compared to other similar RPGs (if you can even find anything that you consider "similar") and Oblivion is the exact same thing for the current time. This is a game that will look even more beautiful in 2 or 3 years when the cost of current extremely high-end PCs drops to the reasonable price range for normal people to take advantage of. Expect beautiful replayabillity throughout the next few years.

* The AI goes so far above and beyond that of Morrowind that you can't help but be impressed. Every NPC (from animals up to people) lead normal lives, interact with each other and the world, and display extremely lifelike realism.

* The physics engine and combat system for Oblivion is worlds ahead of what was possible when Morrowind was released. Expect combat to require a bit more skill and be far more visually appealing and realistic. You'll appreciate this when you are standing atop a rock ledge and wolf leaps through the air at you, with quick thinking you swing your long sword about and connect with the beast's head. The pleasure you'll feel as it lets out a yelp and crumples and falls lifelessly down the rock ledge to land in a heap will be very satisfying.

Hope this helps answer your question. In short: You will not be dissapointed by Oblivion, quite the opposite I'm sure.