If you're running the official 1.2 patch, then see the main World Textures page for more details on mods that can further improve on the default noise effect shader. If you can't run the official 1.2 patch for some reason, then read on.
The Better Tiling LOD textures provide a perfect alternative to the Shaja/CaptnKill solution. When used in conjunction with Better Tiling for Qarl 1.11 landscape textures, the Better Tiling LOD mod provides a smooth transition to distant landscape. However, it does not offer quite the same level of detail as Shaja or CaptnKill LOD textures. You'll have to decide for yourself which one you prefer.
In the following screenshots (all taken prior to the official 1.2 patch), you can clearly see the difference. Bethesda's original LOD textures are extremely blurry and there is an abrupt shift midway into the distance, where the normal landscape shifts to distant landscape. Shaja 2048 and CaptnKill 4096 both offer much more detailed and interesting distant textures, but they still suffer from the same abrupt shift problem. In contrast, the Better Tiling LOD textures make the shift from normal landscape to distant landscape almost invisible (when used in conjunction with Better Tiling for Qarl 1.11 landscape textures).
original LOD (vanilla pre 1.2) | Shaja 2048 (pre 1.2)  | CaptnKill 4096 (pre 1.2) | Better Tiling 4096 |
Most other LOD textures released so far (Zacharot, buhay) are similar in appearance to the Better Tiling LOD textures, but do not blend as well with the Better Tiling for Qarl 1.11 landscape textures. Zacharot has the widest selection of styles, but the differences among them are not dramatic. If you prefer the Shaja/CaptnKill approach, then you may want to consider using blade9722's improved versions of these (as opposed to the Better Tiling LOD packs -- see the mirror links below). Installation for LOD textures doesn't have to be done in any particular order (you can safely ignore their position in the list).
BORDER REGIONS
It is questionable whether there is any value in running any of the border region LOD packs, so those texture packs are not included in the main list, although they are linked in the mirror site listings. Here's what blade9722 had to say on the subject: "After generating BTQ LODs, I realized border regions replacement are only a waste of memory. They cover land which is far away from walkable area, and you can hardly see from mountains peaks (and they will appear very very far). Actually I removed my border region replacement from my Oblivion installation, and also my border region normal maps (which are mipmapped Bluesteel). " Also, there doesn't appear to be any way to generate new high-resolution LOD textures for border regions using the Oblivion Construction Set, so it is unlikely we will see any new releases for these textures.