Things You'll Need
Instructions
Download OBSE (see Resources).
Unzip it. If you do not have unzipping software, you can download a program such as "7-Zip" or "WinRar." Both are free.
Open "My Computer" and navigate to your "Oblivion" directory. By default, it installs to "\Program Files\Bethesda Software\Oblivion."
Drag and drop the files obse_1_2_416.dll, obse_editor_1_2.dll and obse_loader.exe into the "Oblivion" directory.
Download the mod "Werewolves: The Curse of Hircine." Unzip it and drop its contents into the "Oblivion\Data" sub-directory.
Double-click on obse_loader.exe. This loads "Oblivion" with the added functionality of OBSE.
Select "Data Files." Check the box next to "Werewolves: The Curse of Hircine."
Play the game. While traveling, you'll now encounter werewolves on occasion. If one hits you, there's a slight chance of you contracting lycanthropy and becoming a werewolf yourself.