It seemed to like my hardware, but it wouldn't get over that Pixel Shader issue. Best Buy let me return it, though.
I later bought it again, and really enjoyed it until the alien stuff happened. That was cool, but I was already invested in the normal game-play.
As for the computer, itself, it'll max out Oblivion with plenty of graphics mods. I can't remember the GPU in it, now, but it's not the greatest AGP unit ever made.
It was just the best when I bought it. When I first built it, it had a Thunderbird CPU and a Matrox GPU.