it's not a "Third Person Mod" you can do that in the game by pressing 'R'. It is however probably a custom texture/model since that's not in-game quality. Oblivion characters are invariably ugly despite the landscapes.
It is, I find, incredbly hard to create a character in oblivion that isn't ugly, well I can make character look cool (my argonian is awesome) but how in hell people manage to make pretty girls I don't know. Whenever I try to make a female character they look average to fugly, and who wants to play as one of them? If anyone can link to anywhere where you could, I don't know, dl premade characters or something that'd be great, like the pictures in above comment, thanks :D.
Oblivion is a great game as long as you fill it with mods that fix all the pathetic things like the leveling up system.
This picture got me into playing Oblivion in the first place. Never could get a character to look anywhere near that good, though. I guess I didn't get the right mods.
Hell, I should've searched more back then. I think the basic mod for the body is Corwyn's Fantasy Figures set. The muscle textures and the lines of the shoulders and hips match. I can't find the nice swimsuit tan, though.
Also, I agree that, without mods, it is astoundinly hard to make a good looking female character. And what ever you do, DON'T BECOME A VAMPIRE! Man, the complexion are a nightmare. I mean, why do the NPC's get to look cool as a vampire, but the player looks like they're fuckin' 80? AGH! Sorry, uh... It's the little things that piss me off.