
Hallelujah The tilde key works
I have my tilde key back and am as happy as a mouse in a cheese factory.

I do have the Console Ring mod but I am also a very stubborn person and it annoyed me that I had to use this very good and handy artifact. Also I had the same problem in Morrowind.
Now good folk have told me that it is because of an infrared driver. The device itself does not need to be installed just the driver installed and enabled. So I looked through all my drivers or so I thought but didn't see one labeled infrared. I just spent two hours at Beth's official site running a search. Hit on 'Can't open console' Found instructions for FO3, good to know. Finally further down the list was one for Oblivion. Checked it and one smart cookie had posted that it was under the Human interface Devices. I looked and there was a bunch of Consumer Compliant etc, etc drivers.

before my eyes did appear two, not one but two one Haupauge infrared Device and the other ehome infrared device. I disabled the first one but had to uninstall the other because it would not let me disabl. Disable was greyed out., I hope I never need it.
Sometimes life is beautiful and I just had to share a little good news. Might even help some lone and wandering stranger too.