Well, that was frustrating.
First off, the Ducks started off terribly, and could have thrown in the towel early. They didn't. They fought back from an early 10-0 deficit and took the lead 17-16 in the 3rd quarter after taking the opening possession of the half for a touchdown.
But college football is a game of momentum. On Oregon's second drive, Oregon had moved 44 yards on 3 plays, and were rolling. Then, Jeremiah Masoli and LeGarrette Blount fumbled a handoff, which Blount then kicked downfield which ended up going out of the endzone for a touchback. And that was the end of Oregon's offense. Oregon went three and out on the next drive, and managed a single first down the drive after that, failing to capitalize on exceptional field position created by the Oregon defense and special teams.
Ohio State then went on a 13 play, 81 yard drive, on which Terrelle Pryor made numerous big plays, the back-breaker was a stellar pass by Pryor and TE Jake Ballard to convert a 3rd and 13. The gameplan was to force the game into Terrelle Pryor's hands, and when it mattered at the end of the game, Pryor converted.
The Blount fumble really changed the game. After that point (especially with LMJ out), Oregon just couldn't get any rhythm offensively. This wasn't aided by Jeremiah Masoli having a rather poor game, accounting for a mere 81 yards through the air.
Oregon had their chances in this game. But when the opportunity was there, the Ducks fumbled it away, and OSU did not.