There is a glitch in Oblivion which allows you to Duplicate items in your inventory by as much as you desire. This is especially useful for arrows, ingredients or lockpicks. And its rather simple too. Here is a step by step guide to duplicating, advanced and basic.
BASIC DUPLICATION: Useful when you need to give away an item to progress, but want a copy for yourself, or for making quick money with a valuable item, or Alchemy Ingredients.
1)Obtain 2 or more scrolls of the same type, example: 2 Flares. Have them in your inventory, along with the item you wish to duplicate. Note: You must have a smaller amount of the item you wish to duplicate than the amount of identical scrolls, example: 2 Flares, 1 Iron Longsword. 4 Flares, 3 Iron Longswords
2)In your inventory, press the use button on the identical scrolls Twice. Now go to the item you want to duplicate, and drop it. When you exit your inventory, there will be duplicate of your item depending on how many scrolls you have.
ADVANCED DUPLICATION: Useful for extra arrows, lockpicks, or making lots of money quickly with a valuable item.
1)Obtain 2 scrolls of the Same Type. Now Obtain 4 Scrolls of identical type, but they must be different than the previous 2. Example: 2 Flares, 4 Heal Minor Wounds. Have these ready in your inventory, along with the item you wish to duplicate.
2)Go into your inventory, and press the use button on your 4 identical scrolls. Now drop the other 2 Different scrolls which are identical to each other. Example: Select 4 Heal Minor Wounds (twice), drop 2 Flares.
3)Exit you’re inventory, there should be 6 Scrolls on the floor. Pick them up, and then Select them twice, this time dropping your other 4 Identical Scrolls. Exit Inventory, there should be 10 Scrolls on the ground. Repeat this as much as you want until you have a large amount of scrolls, preferably under 100 to avoid lag.
4)Select your biggest amount of identical scrolls and drop the item you want duplicated. There will be duplicates of the item on the floor depending on how many scrolls you have.
Thanks, hope this helps.