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The Elder Scrolls IV: Oblivion Hints
Other Useful Enchantments
1 of 5: One really good thing to do with a grand soul is to enchant a weapon of your favorite type with a powerful fire, frost, or shock damage effect. I always make a Longsword of Flame early on that does 17 points of fire damage for 3 seconds. Later, after I'm high-level enough to get Daedric equipment, I enchant a Daedric longsword with Fire Damage 40 points for 1 sec. (I know that 17X3 is more than 40, but I like my Daedric Flamesword to deliver all of its fire damage at once instead of over time.)
2 of 5: Another great weapon to make is a health absorber. It will have an Absorb Health effect on it that can be up to 13 points in 2 seconds or so with a grand soul. Use it in combat when your health is getting low, either by itself or in conjunction with healing potions and spells.
3 of 5: Armor, clothing, and jewelry that's enchanted with a Feather or Fortify Strength effect will increase your maximum encumbrance and allow you to carry more. Grand souls can give a Fortify Strength 10 points and a Feather 49 points. (Note that the Fortify Strength effect is a bit better than the Feather effect, so always go with it.)
4 of 5: Items with constant Night-Eye, Water Walking, and Water Breathing effects are good "utility" items to always have with you. You can use any soul when making them (even petty) since none of those three spells has a magnitude.
5 of 5: If you don't want to ever bother with armor, you could make yourself a set of "Shield Clothing" with the Shield, Fire Shield, Frost Shield, and/or Shock Shield effects. However, if that's what you want, you should definitely use sigil stones instead of regular enchanting. See the Shield (Fire, Frost, Shock) info for more details.