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The Elder Scrolls IV: Oblivion Hints
The Ghost Ship of Anvil
1 of 13: This quest takes place aboard the Serpent's Wake, which is docked just outside Anvil.
2 of 13: Find Varulae standing around on the ship's deck and talk to her.
3 of 13: After you agree to help, she'll give you the key to the nearby door.
4 of 13: The spectral sailors that you'll be fighting are ethereal, so make sure you have an enchanted or silver weapon (or some good attack spells).
5 of 13: After entering the ship, open the door right in front of you and kill the nearby spectral sailor.
6 of 13: Search the dead body on the bed to find the captain's key, which opens the nearby treasure chest.
7 of 13: Find the trap door on the floor near the door you came in through and use it to go down to the mid deck area.
8 of 13: After dealing with a couple more spectral sailors, find the trap door that leads down to the cargo hold.
9 of 13: Turn left to find the chest with Varulae's special crystal ball in it.
10 of 13: Grab it, then either kill the spectral sailors and loot the place, or just run all the way back to Varulae without fighting them.
11 of 13: When you turn the crystal ball over, you'll get an enchanted sword called Redwave as a reward.
12 of 13: NOTE: If you want to wreak a little havoc on the docks, leave at least one spectral sailor alive and let it chase you outside.
13 of 13: NOTE: As for who murdered all the sailors, you can find that out in an advanced Dark Brotherhood quest.