I get this glitch every hour or so, sometimes more often. Simply saving, exiting, and relaunching fixes it. It would probably be a CTD if I didn't have anti-crash mods propping Oblivion up, so I'm not bothered by this minor inconvenience. Sometimes it's funny.
The colors can vary wildly, depending on what's in the scene at the time. Once, the screen was covered half in bubblegum pink and half in vibrant green, with just a rock remaining in the foreground.
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