Invisibility and chameleon both work just like they did in Morrowind. If you are invisible and you make some action, then the spell ends, whereas Chameleon keeps you at the same level of visibility constantly. If you have an Invisibility CE item, you have to remove it and put it back on every time you perform an action. There are a number of 'base' items as well as better ones, but they are level dependant as is most random loot. ;o)

I'm pretty sure I got my first Chameleon item from a bandit, couldn't tell you where. But I can tell you that on the Orrery job one of those guys had the same one, a glass cuirass with 30% or 60% Chameleon. Hard to see the fetcher, but I went in the daylight so it was easier ;)

You know the drill, but its better in Oblivion, stay to the shadows, always be sneaking. Sniping a baddie with your bow while wearing your Chameleon pieces feels awesome :)

thanks you two..always good advice,.(hi cat!)

here's what you do. get five articals of clothing or armour each takingup a diffrent slot and five grand soul gems with Grand Souls in them. black Soul Gems work as well. to enchant each with %20 Chemeleaon. you need a Chemeleon spe3ll that you are at the right level of Illusion and have enough Magick a to cast. you wo nt be able to wear other armour but who cares? your invisible!