Seems oblivion does same thing as BF3.
I had a 512 8800GT and when I played oblivion with it, it ran fine utilising about 500 of its vram (but i had to disable aero to prevent vram running out). Now playing the same game with my new GTX 460 1gig it utilsies about 900meg of vram. So it seems there is a minimal game(s) will need to run without stutters but then if more vram is available on top of that they can still use it to further improve performance. What I have noticed is the colours are more vivid on the new card detail seems better, so I wonder if oblivion also auto toned down graphics to fit into smaller vram.
I had a 512 8800GT and when I played oblivion with it, it ran fine utilising about 500 of its vram (but i had to disable aero to prevent vram running out). Now playing the same game with my new GTX 460 1gig it utilsies about 900meg of vram. So it seems there is a minimal game(s) will need to run without stutters but then if more vram is available on top of that they can still use it to further improve performance. What I have noticed is the colours are more vivid on the new card detail seems better, so I wonder if oblivion also auto toned down graphics to fit into smaller vram.