I'm working on the concept of a crafting mod similar to one found in TES III.
It was a five part mod that allowed you to cut down trees for wood, and use that wood to make things. Anything from tables, chairs, to weapons hilts and the like could be made. It also allowed you to melt down weapons found while dungeon running (or stealing) into ores and ingots that could be used to create your own weapons and armor. This weapon and armor was based on your stats. There were a number of other things that were possible, but I cannot remember what they were.
If anyone is interested in helping to create such a mod for Oblivion, or if you have any ideas, let me know.