I have been working on fixing the lighting issues in game. Thus far i have 4 chapels complete. The main issue I'm working around is that the chapels interior are 2 solid pieces with multiple floors. Iv been moving lights around, expanding lights, and sadly having to delete lights. I'm trying to maintain the vanilla Oblivion integrity with much success.
Once i get everything looking less like a rave and more like a game I plan on redoing the lighting entirely. Right now I'm working on quick simple fixes and eventually wish to make it look like the screenshot provided (that will not be how it looks once iv fixed the lights but an idea in the distant future if i continue beyond the light flickering)