They were good several times, but they didn't fully ascend the mountain until Kelly got there. They did get serious about football when Belotti was hired though.
Oregon prior to 1994: 443-407-47
Mississippi State prior to 1994: 415-433-39
In the first 100ish years of college football, they were 0.25game/yr better than us.
Oregon had been to 9 total bowls prior to the Rose Bowl loss of 94, which was their first NYD bowl in 37 years. They've been bowling all but 2 years since, good or 18 bowls in the last 20 years.
1994: 9-4 Rose Bowl loss. Final Rank 11. First Final Season Ranking since 1957. Rich Brooks rides off into sunset with career record 91-109-4 @ Oregon. Mike Belotti is hired.
1995: 9-3 Cotton Bowl loss. Final Rank 18. Belotti's first year. Also arrival of Phil Knight after the bowl loss on NYD. Curious that he got interested AFTER they'd gotten a small taste for success. He wanted to help take the "next step", but would he have ever taken the "first step" had they never put together these two good years?
1996: 6-5
1997: 7-5 Las Vegas Bowl win
1998: 8-4 Aloha Bowl loss
1999: 9-3 Sun Bowl win. Final Rank 19.
2000: 10-2 Holiday Bowl win. Final Rank 7.
2001: 11-1 Fiesta Bowl win. Final Rank 2.
2002: 7-6 Seattle Bowl loss
2003: 8-5 Sun Bowl loss
2004: 5-6
2005: 10-2 Holiday Bowl loss. Final Rank 12.
2006: 7-6 Las Vegas Bowl loss
2007: 9-4 Sun Bowl win. Final Rank 24.
2008: 10-3 Holiday Bowl win. Final Rank 12. Belotti rides off into sunset. Chip Kelly hired.
2009: 10-3 Rose Bowl loss. Final Rank 11.
2010: 12-1 BCS NCG loss. Final Rank 3.
2011: 12-2 Rose Bowl win. Final Rank 4.
2012: 10-0 BCS bound
Even with Phil Knight money, it took 6 years and an NFL quarterback to ever really overachieve in a single year. Then another 6 years to start to become consistently elite.
And the NCAA still hasn't ruled on them yet about Lache Seastrunk to my knowledge...