Rockmilk Cave.
North of Leyawiin?
Google a oblivion map and find the exact location its not far of that beaten track.
Loads of bandits and marauders i think that fight each other, then u can loot their daedric or glass that they wear, they also carry a bit of gold :).
no
Deep scorn hallow
Usually in random loot.
buy it.find it on random loot or make it with alchemy
In random loot, I believe.
It is found randomly in loot or on enemies. You cannot be sure of finding it.
They can be dropped as random loot, or, you can make one using a Sigil Stone.
To get better weapons just level up and you'll find better weapons when loot remains.
Barren cave.
that would depend which add-on but really just collecting loot from enimies and selling it
In fact there is no Exp on oblivion but the higher the difficulty the longer it takes to kill the Creature/Person which means the fight lasts long enough to increase one of your skills.
most enchanted items, in this case the neclace of swords, that you will find in oblivion are random loot meaning that there is no set location generally random items like that are usually found in containers in dungeons and on npc's such as bandits, marauders, necromancers, and conjurers