The Elder Scrolls IV: Oblivion/Enchanting

Enchanting is a practice done only by Apprentice rank or higher members of the Mages Guild. You can also find enchanting and spellmaking altars in Frostcrag Spire (see Wizard's Tower page for details). Enchanting is a very rewarding service for any character. There are two ways to enchant an item: By using a Sigil Stone, or by using an enchanting altar.

Enchanting Altars
Enchanting altars are fouund in three places. In the Chironasium in the Arcane University, the Arch-Mage's quarters, and in Frostcrag Spire. All you need is a soul gem, some cash, and an item to enchant. You also need a good variety of spell effects. You can enchant a weapon, or a piece of clothing or armor. It's simple.

Note: No, you can't have more than 1600 charge on an item enchanted by an enchanting altar. The item gets 16 uses.

Sigil Stones
You should make it a practice to close any oblivion gates you find, and take the Sigil Stone. The best Sigil Stones can be found once you reach level 17. By then, they will have the best enchantments in the game. There are two effects: an anti-enemy effect, and a character effect. If you select a weapon, you'll only be offered the enemy effect, and vice-versa. The stone gets destroyed when the enchantment gets complete, so use the cloning glitch or something.