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The error message "Identity System Configuration already exists on the specified LDAP" is complaining that the schema objects required by OAM already exsit on the specified ldap. The schema update needs only to be performed once (usually the first Identity Server installation, although it can be performed manually as a standalone operation) on each ldap instance, after which subsequent installation of Identity Servers do not need that step, which can be avoided by answering "No" when asked if it is the first Identity Server to be installed.
In order to check if these schema objects are in your ldap, look at the schema for a lot of oblix* object classes and ob* attributes - if they are there then the schema has been added. OAM only supports OVD as the User ldap store, not the configuration store. When you first install an Identity Server, it is necessary to give OID (in your environment) as the configuration store, and the installation will usie the OID_oblix_schema_add.ldif file to update the OID schema. When you specify the user store as OVD, OAM adds VDE_user_schema_add.ldif to the OVD schema.
I suspect that your schema objects may be fine, but if you want to clean them from your directory you can use the *delete.ldif files supplied (all the ldif files are in identity/oblix/data/common) for the ldap servers, and start again.