First, please do not use all caps when typing--it is the online equivalent of yelling.
Second--tell us a bit about the setup. What size tank do you have? Did you cycle the tank in any fashion? Do you have test kits, and if so, what are the readings right now?
It sounds like the fish has ich, and is suffering from a bacterial infection. While this is serious, it is most likely secondary to the problems of waste in your tank. So, first hings--do a large water change. This will help. Second, I would do a SW dip. Take fresh, clean water, and dissolve 1 tablespoon of water in about 1 quart. Net the oscar, and put it in the SW. Leave the fish there for about 1-2 minutes, unless the fish shows serious signs of distress. Return the fish to the aquarium.
Keep doing water changes--about 20% of the tank PER DAY. Repeat the saltwater dip about every 3 days. In the mean time, do some reading on the nitrogen cycle and it's role in the aquarium, ich, and oscars. While oscars are extremely popular fish, they also come with some challenges. First is size--9-12 inches is common, and up to 18 not unheard of for the adult oscar. Oscars are also huge waste factories, so water filtration and changes are very important. All this adds up to the need for a large tank--55 is bare minimum, and 75-90 would be better. The other consideration is tankmates. Oscars will eat any fish small enough to fit in their mouth, so you will be limited to other large fish--and this means another big waste producer.
HTH
