Vistas gaming performance is always worse than XPs. Thats because it eats more RAM/CPU in itself (1GB RAM for me!) and that the drivers are still fairly new. (Pretty much the same as XP was to 98 )
He could try to install the nVidia tweakers (e.g. Coolbits/RivaTuner) and lower the "Max Frames to Render ahead" from the default 3, to 2 or even 1. This setting "should" improve the input lag but also might lower FPS. Since you say that the game runs fairly smooth, it might be worth a try.
Also take a look at this page:
http://www.tweakguides.com/Oblivion_1.html
Hope it helps.
Best regards.
This is not true.
There are a number of people that have reported better fps in vista than on xp with quite a few games. It doesnt seem to always be the case but its possible. Usually the fps drop most report is not that bad.
Whats worse tho is your still one of the many that dont know about how Vista handles system memory, it has a super fetcher that memorizes what programs and apps you launch and preloads them into memory, and it also holds onto alot of memory for other reasons so at idle the mem usuage is very high. But when you go to play a game or do something else that requires the memory, Vista releases it and at that point it uses up very little almost on the same place as XP.
Bottom line, Visa uses unused memory and thats a GOOD thing not a bad thing, it atribues to why vista overall is faster and more smooth than xp.
As for the on topic answer. I remember when Oblivion came out there were alot of people with this issue, it was a setting in the game that had to be fixed. Its been too long for me to remember. I think it was the joystick command thing, the fps to draw ahead was also noted to reduce it for alot of people but generally considered a bad idea.
Also increasing the cache if he has alot of system memory may help.
I think we have enough data here to fix it if its indeed the same problem as XP had and not a new one just due to Vista.
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