QUOTE(FearlessHamster @ Jun 27 2008, 11:21 PM)

The differance between bloom and HDR can be hard to see when not directly compared. To see the difference in Oblivion between HDR, bloom and none of them take a look at the screnshoots in the Oblivion Tweakguide at tweakguides.com
http://www.tweakguides.com/Oblivion_7.htmlThe screnshoot with bloom enabled is brighter than the screenshot with none of the effects. The screenshot with HDR is brighter and has warmer colours than the screenshot with bloom
HDR does several things, but the easiest to notice is therse:
With HDR there can be greater contrasts betwen dark and illuminated surfaces . This makes light sources and illuminated of surfaces brighter (bright things can be really bright, dark things can be really dark) , I think bloom also does this to some extent, but not as well as HDR.
HDR also simulates the way the human eye adapts to changed light conditions. When looking at something bright the eye adapts so it after a moment looks a bit darker. This is not the case with bloom.
Since FearlessHamster said almost everything to be said about the issue I'll try append just a few tech details.
At some extent both are similar and try to sharpen contrast. But while HDR is dynamic (so the name) and need special hardware, bloom is much more flexible in this (would be much more slow than HDR if this last wasn't so resource hungry).
Another thing is bloom acts in the whole scene while HDR tends to be more specific drive to particular points.
But if Oblivion is the only to be weight in the answer another issues comes hard: HDR in Oblivion doesn't allows using Anti Aliasing and so get the contour less smooth if one VC can afford AA and anisotropic filtering (edit: this last is the resposible for those little shining in the objects that bloom and HDR just amplifies, HDR having something in its own here too).
So using HDR, bloom or none is more a question of compromise in oblivion. Even the HDR use isn't optimized here and lead to astonishing views at some places thru eyes harming ones in others (I got bored to death with HDR and at minor extent bloom every time I entered conversation with NPCs).
This is a thread that can't be answered with objectivity, the better choice is the one that fit better your taste or runs more smooth.
PS edit: My personal taste is bloom with some AA and anisotropic filtering, tweaking a bit with the contrast and brightness so to minimize the max the "face to face" conversation and general over exposition... to better this I use the mod that zoom out these "encounters". Anyway HDR is sure the best to take panoramic screenshots

Before someone asks, the "zoom" mod is named something as Talk with your hands" if I correctly recall.