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The Elder Scrolls IV: Oblivion Hints
Shield (Fire, Frost, Shock)
1 of 6: The regular Shield enchantment adds to your armor class (AC) rating, and can in sufficient quantity totally replace armor. The Fire Shield, Frost Shield, and Shock Shield enchantments do that plus protect against a particular type of elemental damage.
2 of 6: By far the best way to do this is to get your character up to level 17 and start grabbing sigil stones. See the Oblivion Worlds hint section for more info on getting into Oblivion worlds and finding their sigil stones.
3 of 6: There are sigil stones that give 25% for each of the three elemental shield types. That means you'd only need four sigil stones to get a 100% shield effect -- though note that AC is capped at 85, so only the elemental protection would actually be 100%.
4 of 6: NOTE: You don't have to get four sigil stones with the exact same type of elemental shield. You could mix them, such as two Fire Shields, one Frost Shield, and one Shock Shield. Your AC value would be the same (85), and you'd have a wider variety of elemental resistances, though none of them would be 100%.
5 of 6: Since even the best suits of armor (Daedric and glass) can't ever get your AC above 85, you could use shield items to totally replace armor. The advantages are that you could enchant light-weight clothing items, thereby removing the need for carrying heavy armor around, plus your shield clothing's conditions would never degrade and need repair like armor does. Also, wearing armor interferes a bit with spell effectiveness, but shield clothing won't.
6 of 6: However, there's nothing cooler-looking than a character with a full suit of Daedric armor on him. Also, the armor could have other enchantments on it (Feather, Fortify Strength, etc.) besides delivering the AC of 85, whereas shield items can only have the shield enchantments on them. Besides, a Reflect Damage of 100% is far better than even an AC of 100 would be, and it's achievable (though difficult).