I just got this item in the game, a bunch of people had previously told me it required level 26 to use, naturally making it impossible. But when I got it, it said level 20.

I'm thinking that the level of the amulet might depend on choices made in the game?

I'm running the unpatched game atm.

in my game, the amulet requirement was level 20 too, so I'm a bit suprise as why some item requirement might be over 20.

It said level 26 for me. My character was only level 18 when he got hold of it. I don't think that would be a factor though. I'm running patch version 1.9.

Mine saig level 26 also and I'm level 17,so fighting Morag is impossible.I can't get behind the blade trap to get to her protectors,,What to do ???Spoil me please!!I've got Morrowind waiting in the wings,

I didn't have any patch, if that matters.

If you hold down the tab key, in the final battle, a statue will light up. Bash that statue down and see if that helps. I was able to finish the final battle without the amulet.

I wasn't able to use the amulet either. I took out the guys protecting Morag using spells, then ran down the hall and let Morag chase me. That way I didn't have to deal with the blade barrier.

For morag, bash her gaurds, then smash the gargoyle statue then kill any of the ones behind the blade barrier(smashing the staue disables them). You'll see that each bad guy protects her from something different. Just kill the ones protecting her from what you're using. eg my guy is a fighter with the daystar long sword so I destroyed the protector from blades and the protector from fire.