How to Get Ultimate Armour in "Oblivion" on the 360
Armour is apparel or jewelry you wear for protection against damage sustained from weapons and attacks in Oblivion. The definition of the "ultimate" armour would depend upon your character class (mage, fighter, rogue, etc) and your skill base (heavy armour, light armour.) There are several universal steps you can take to obtain the most powerful armour available for your particular play style.
Instructions
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1
Select an armour class (light or heavy) that is appropriate for your character type. Archers, rogues and mages use light armour most effectively. Warriors, Battlemages and other strength based characters are more suited for heavy armour. Wear your armour consistently while fighting in the game to build it's protection attributes automatically. Repair your armour yourself to keep it in top condition and to increase your armour rating.
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2
Visit the various weapon and shield stores located across the provinces of Tamriel to purchase upgraded or enchanted armour as your character's armour skill increases. Loot the bodies of enemies you kill during battle to take any upgraded armour that is available. The "Umbra Heavy Armour" set is high grade and can be obtained by defeating "Umbra" in Vindasel, south of Imperial City. Umbra can be a challenging opponent for entry level characters.
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3
Join the Mages Guild and build your magic skills to enchant your armour with spells of protection. You can use the enchanting altar at the Arcane University, or sigil stones collected by closing Oblivion gates to enchant normal clothing, jewelry and standard armour with protection spells yourself.
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Complete the main quest in the game to obtain the "Imperial Dragon Armour" as a reward. You will receive notification that your custom armour will be ready in two weeks following the defeat of Mehrune's Dagon by Martin. The armour is customized (light or heavy) based upon your character's profile.
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Tips & Warnings
The rating of your armour is impacted by your armour skill, as well as the armour's condition. Check the status of your armour in the inventory menu and repair it consistently.
Standard armour does not provide protection from magic spells. Use enchanted armours for protection from magic.