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Go to the mages guilds or local ingredient shops in the towns. Find the merchant and buy as many as you can afford. You must be level 4 or higher for Ectoplasm to appear in a alchemical vendor's inventory. But I think I have something better for you. Go to Anvil and its docks. Look for the closest ship to the door you just came out of. There is a lady who need an heirloom recovered from the ship. The ship however is infested with the ghosts of the sailors. Kill them with magic, or a silver or higher melee weapon and you will get 5 portions of ectoplasm + a shiny new Cutlass called Redwave.

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Q: How do you buy ectoplasm on Oblivion?
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