It is not too complicated [img]smile.gif[/img] If you want to enchant an item then you will need:
1. The item to be enchanted. It must be an unenchanted item. You cannot
add enchantments to an already enchanted item.
2. All spells which you need to bound to the item. These spells must be in your spellbook. Scrolls or potions cannot be used.
3. A filled soul gem containing a soul that will give the item the "magic power".
Now, take the soul gem and drop it to the figurine. You will get a dialog, which will ask whether you want to enchant or recharge. Select "enchant".
Another dialog will appear, where you will select the item to be enchanted and then you can add spells to it. When you are adding spells, you must not exceed two values:
1. The "magical capacity" of the item. It's the "smaller" stat, IIRC, in the upper part of the dialog. Each spell takes some available capacity.
2. The "magical power" supplied by the soul. Treat the magical power as the "maximum of mana points". The total casting cost of the added spells must not exceed this maximum of mana points.
Click "Enchant" - and you will fail
That's because enchanting is, in general, overpriced. You need a very high value of the Enchant skill and very high values of INT and LUC if you want some acceptable chance to succeed in enchanting for some useful enchantments.
I think it's better to have your items enchanted by the enchanters in the guilds. They will never fail but it costs trucks of money. Well, the money need not be a problem in the advanced stage of the game.
Otherwise, you can boost your LUC and INT by means of potions and, if you can cast Fortify Skill spells (possible in early patches of Morrowind by gaining the Fortify Short Blade spell in Morag Tong, unpossible later, possible by some mods) then you can cast Fortify Enchant on yourself. Save the game and try [img]smile.gif[/img]