Follow this until you come to another signpost. At the first cross roads, take the right road. The Boots can be found on the NPC Pemenie. The only thing that happens when you finally find it and pick it up is that the lady and her translucent friend will attack you. The ring is nothing special, not magick, not unique. If you cannot find her ring in the pool, this picture will help.
You get the amulet as a 'reward' for helping out his lady-friend. At the base of the first bridge is the pond. Due West of the words 'Ald Velothi' you will see two bridges. The Amulet is being carried by a translucent fellow standing by a pond in the West Gash region.
The Elder Scrolls 3: Morrowind - Hints Morrowind Hints
