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So, I know that there are quite a few mods that auto update leveled items and spells or give them to you at the max level, and I was wondering, is there one that can update them more manually? Like have a guy that lives in the middle of nowhere that can sell you a service to upgrade the items that you have at that moment to match your current level for a fee. Is there a mod like that, or no?
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Steventh55: So, I know that there are quite a few mods that auto update leveled items and spells or give them to you at the max level, and I was wondering, is there one that can update them more manually? Like have a guy that lives in the middle of nowhere that can sell you a service to upgrade the items that you have at that moment to match your current level for a fee. Is there a mod like that, or no?
I have looked at a lot of mods for Oblivion, and I don't remember one quite like that. Most of the ones that affect leveled items do it the way the one I have installed does; it only affects items I'm carrying. If I have something stored in a chest somewhere, it leaves it alone unless I go back and pick it up.

If you can't find one that does it like you want, where you pay for a service, you could maybe justify it in your mind by saying that the items aren't actually getting better, it's just that your character is getting better at using them. ;)
Found one! It's called 'Balanced Leveled Item Upgrade' by PushTheWinButton and you use these altars to upgrade the leveled items and you use gold to do so.
Heh.

That one didn't exist when you originally asked your question (it was uploaded May 31) and though I did see it after it was uploaded, I admit I'd forgotten about your question by then. Glad you found it though!