Yeah, but all the stuff you use you find in boxes or in the shops...
Apparently not... (did visit town though)
Yup. You explained stuff like "Elven stuff drops from lvl 15 and not before" and were incorrect. Please try again!
Oh, and you can "explain" the sytem, but if the system does not listen; or is strangely mutated... that doesn't really help. How many times you repeat "enemies should drop Dwarven stuff" I don't get Dwarvenstuff from that in my game of Oblivion...
PS. Just looked at some old screens I made when playing Oblivion and it seems I had those Dwarven boots already at lvl 6/7... (only piece of Dwemer I found though... even when meeting 2 bandit-riddled ruins after the town, where I had 2 or 3 levelups already...)
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Some items are set. Some NPCs have a certain type of armor, regardless of your level (
) and others, like bandits and lesser side quest related NPCs, do change their equipment once you hit 10. Admittedly, it's not really really common. I still run into fur wearing bandits from time to time out on the roads, but for the most part, they're in Mithril or a combination of Mithril, Chain, Leather, and Fur. (I'm level 12)
I haven't had a problem, with three different characters, locating both Mithril and Dwemer items after passing 10 and even a bit before that. Hell, just doing quests gives you better items, if only because the bad guys you're killing are wearing it.
And I think I'm about to die...tornado watch and all...and the squall line...and...and...mommy. :'(