Milchar
From the OblivioWiki – your guide to everything Oblivion
Milchar is home to the Amulet of Disintegration which is needed in The Coming Storm, the Grove of Reflection, and the Tree of Shades. The latter two are key in the main quest towards the end.
The Amulet of Disintegration is acquired at the bottom level of the ruins, which can be accessed from a back entry point a fair distance northeast of the left-over ruins above ground. To obtain the amulet from its pedestal, you must use the torch in the back balcony of the room located in the white fire to light all of the "fire basins" in the room, three in total. Note that you cannot pick up the torch, you must grab the torch to move it, or use a telekinesis spell to 'carry' it.
Some players may be interested in the skull which rests in Milchar, Xetrem, because it belongs to a ghost who wanders the Hill of Suicides. As soon as you enter Xetrem from the Milchar, Nexus entrance, turn left, head up the stairs, then turn right. His skull is laying on the floor.
