(Please go easy on me... this is my first thread)

It would be nice if their was a mod out there that rewarded levelling (as well as good armour and weapons) with your character having an advantage over the NPC's in Oblivion, but at the same time not make the game a complete pushover. Does anyone know where I can find something like this?

There are thousands of mods out there that are able to rebalance the game. Check places like tessource.net

Though as you level up you meet new NPCs that are a challenge --- and you are now able also to deal more easily with the lower NPCs --- so it is rewarding in effect, in reality.

You are also improving your attributes and the many variations in abilities of how to fight the enemy --- variations of fighting that the NPCs have a very limited choice of. So actually you are continually gaining all the time you are levelling.

You will continually find that you will keep overtaking the NPCs more and more the more levels you gain. At about level 25 you can beat any NPC.

You will continue gaining more than the NPCs --- and become god-like.

You will be wanting to move the difficulty slider more to the max position to make it more of a ballanced game.

I think everyone here will confirm this experience of the game.

.... But to answer your question (a mod out there that rewarded levelling), I don't know where one of those mods is. I myself find that that I am over-rewarded without one.

... If that's any help, and congratulations on your first thread which is fine ... just that my view is a bit different.