Facegen to Oblivion Converter Error?

[Zhila]

Hey, I recently got Oblivion and wanted to import a custom face into it. Just like this video: 

 

Followed every step. But on the race selection, once I hit 'next' it tells me that it is unable to open the Oblivion.esm.

 

I run it as admin, couple times in compatibility mode with various windows versions, still the same error. Does anyone have any idea what is wrong with this?