Howdy again...I'm building Bernius Manor and I was looking to incorporated some furniture from other mods (with their creators permission of course) into my mod. For example...mod x has a dishwasher and I load the mod in CS ensuring mine is active. I add the dishwasher to the kitchen and save my mod. I go to test the mod in Oblivion and if I don't activate the other mod, the dishwasher in mine won't be there. How do I bring the dishwasher into my mod so I don't need to use the other? Thanks

You cannot use items from one .esp inside your .esp. If you want to use someone else's meshes inside your mod, you will need to define them within your mod (as a different name), then use those.

Fair enough...but how do I define them within my mod. Thanks

Indeed what happens is CS gives the reference the index of the load order. Since Oblivion is the first (00) assuming your ESP is the second it receives an index 01(hex) and the third mod will receive that index 02 (so its reference is something like 02004567)
This implies even if both mods are present in the game the references yet will not match unless they are as same as in the CS.

The newer OBSE bring functions to deal with mods and indexes, but is not yet fully implemented. The only way to reference objects from another mod at this moment is using a plugin for OBSE known as pluggy. But yet the restrictions of licenses and authoring applies.

What about trying this...will it work?

The easiest way to add a new model to the Construction Set for your new mod is to:

1) Place an item into the render window - I use the World Objects > Static > Clutter > Beer Bottle
2) Double click on the beer bottle
3) Click Edit Base
4) Change the Name and click the box that shows the NIF file
5) Navigate to the NIF file that you want (It must be somewhere in your Oblivion\DATA\MESHES folder)
6) Click OK
7) When you get the pop-up screen asking you if you want to create a new form - click YES.
Repeat for each model that you want to add.

DON'T FORGET TO SAVE YOUR MOD.

This can work in game since you will be referencing only objects in your own mod. Albeit the restriction of the meshes and textures being present applies, of course, what is saying the "father" mod must be present. Since I never tested something like this I can't assure, but the logic points this works.
To be sure is enough you looking at the formIDs generated, if they begins with 01 it's alright.
The secret there is using (cloning) a standard oblivion item of same type the one you actually wants. and so applying the nif and icons desired to it.

Edit PS: maybe you can clone even directly the original item properties. Just be sure it doesn't use something else from it's own mod (as scripts or alike)

Generally, you only want to do that when you're adding an item with very similar properties. Afterall, you wouldn't want a chair which you can pick up and drink... For most statics, containers, and furniture, you're really best off just right clicking in the side palette under what you're trying to define, and selecting "new". This is because some things, like containers, activators, and furniture require additional things to be setup, and copying from an existing can lead to unwanted properties or scripts being added.