GameBanshee Forums

The Rockmilk Cave is an excellent place to get armor, weapons, etc. I highly recommend going there. Usually it's just a bunch of people fighting like 6 at a time. So they are not all against you. So just sit back and wait until just a few are left.

I am level 16 and got three Cuirass's worth five thousand gold!
Here is a picture of the location if you have not found it yet:

I'm sorry to have to tell you but this thread is pointless.

Spoiler Highlight to read

Spoiler

Every item in those cave is leveled, just like every other cave in the game. What you'll find there is, like everywhere in Oblivion, determined by your level. Go to the cave when you're first level and all you'll find is fur and leather, or maybe iron armour; go there when your level 40 and everything will be glass or daedric.

Spoiler ends

Galraen's spoiler is spot on, of course, although I would think the thread might be useful to pacifists, voyeurs and anyone else who would rather watch combat from a safe distance than join it but still need some quick cash.

Thread closed, for the reasons described. A glance at the GameBanshee review shows that Oblivion employs treasure and monster leveling.