The Elder Scrolls IV: Shivering Isles Interview has posted a lengthy interview with Bethesda Softworks director of design Bruce Nesmith about their soon-to-be-released The Elder Scrolls IV: Shivering Isles expansion pack.
Q: Weapons also play a huge part in Oblivion and RPG's in general. How many, and what types of weapons and armor have you added for Shivering Isles?

A: We wanted to do something special with weapons and armor. In your adventuring, you will come across Amber and Madness Ore, which you can use to have custom weapons and armor made. There are even special molds that you can find that will let you create enchanted versions. And for those high level characters, the best Armor and Madness items are better than the Daedric stuff you find in Cyrodiil.

On top of this, there are also all sorts of other new weapons and armor. The Golden Saints and Dark Seducers have special armor and weapons that you can acquire. The Grummites have their own weapons and armor as well. There are even some unique items, like Duskfang/'s a sword that feeds on souls. Feed it enough, and it gets a boost to its power.