Finding this weapon isn't all that difficult, although aquiring it might be, depending on your abilities. Llaren Terano has possession of the weapon, and you can find him in Rotheran, a dunmer stronghold on the southern part of the Island that is Home to Dagon Fel. When you find Rotheran, enter the Arena, and kill the spectators. I say this not out of Morbidity, but because they'll kill you if they see you first. Better to get the drop on them. Espeacially Llarn, who can be eaily identified due to the fact that he's wearing an enchanted, green robe. His actions will make it quite clear that you'll have to pry the weapon from his cold, dead fingers. But hey, that's ok by you, isn't it? You can also free the slaves in the arena pit if you like, or have fun watching them get ripped apart by daedras! (Please exscuse my darkside tendancies) This sword is a keeper, and quite a showpiece!