If someone has already done this plz say so

Well, first it would be realli cool if you cuold make furniture or weapons or Jewelry or etc. You could hav 3 different skillz Smithing, Crafting and whatever word is 4 making jewlery.

Smithing: You could make weapons and armor out of metals tthat you find or buy from mines (there would be more mines for different materiels) The more lvls you grew the more you could make and make out of more materiels.
Novice: you can only make normal weapons 40% of the time (i mean not rusty or n e thing) and are not enchantable and Start @ 50% of hp
Apprentice:Your hammers last 10 uses longer
Jouneyman:Your items are enchantable and start @ 100% of hp and have a 60% chance of being fine
Expert:Your hammers last 30 uses longer and have a 90% chance of being fine
Masster: are always fine unless they are great, 70% chance to make a great weapon and hammers last 50 uses longer
You may also buy mines that give you so many ores a week. You can also borrow smith's anvil and forge for a day (4 a price). You can also smelt other items down to ore.

Crafting:You can make items or furniture for your house that you make from glass, wood, clay,silver, pewter, etc. You can get most of the materiels from mines. Wood you can get from chopping down trees,by buying from traders, or by buying a lumber ccamp.Mostly same with smithing.

p.s. i will write jewelry thing on same post once i find out what making jewelry is called

Sounds very interesting though I'm not entirely sure if its possible...still though if anyone can think of a way it could be done that would be awesome...kinda give the game more immersion but I think that it would have to take alot of experience to level up the skills because it would be too easy if you could become a master quickly.

Also I think that when you first start you should only have maybe a 30% chance of success rather than the said 40%, and several other adjustments by way of percentage of success but the overall idea sounds awesome.

Go play Runescape... But thats a nice thought!

I play runescape all the time but it doesn't have awesome graphics or a good fight system, that would be the point of adding it into Oblivion. To enhance your Oblivion playtime since it seems rather dull by way of non combat skills as is.

good ideas.