I am playing obliven on Xbox 360 and a perple box is appering on the lamps in the imp city,the fire under the rosted rats and in place of the Mages robe image.

Hmm, an interesting problem. I can't tell you how to fix it. Sorry, but, maybe it's a hardware issue that needs to be fixed by a good wack!!!!!!

Yea, I'm one of those people............ lol
don't try it though... !!! lol

AFAIK oblivion is programmed to display blank purple when a texture is missing.

Try the following: clean the disk, clear the harddrive cache and make sure the console has enough air around it to keep it cool.

If it still happens try the official forums, they have a support section.