If you are updating a mod you already have, it will prompt you if you want to update or install separately - what to choose here will vary from mod to mod, so be sure to read the installation instructions of each mod! Once it is installed, you can manage the load order in the 'Plugins' tab, where you can simply drag-and-drop the esp to change the load order. Then simply double-click the mod in the 'Mods' tab of NMM after it has finished downloading your mod.
NMM-Installation: First make sure NMM (Nexus Mod Manager) is installed.Download a mod you want to install either through NMM or manually.If you installed your game into your program files folder (which is not recommended), right click the Oblivion.exe either in the Install folder or on your desktop, click properties, navigate to the 'Compatibility' tab, and tick the checkbox next to 'Run this program as an administrator'. Install Oblivion, and for this tutorial we will be using this path 'C:\Games\Bethesda Softworks\Oblivion'.
I will take you step-by-step through the process of installing mods for Oblivion, and soon you will be gaming like the rest of us! Note that these instructions are based on Windows 7