Where exactly can i find this shop? I searched everywhere. I tried to find it in Molag Amur but no luck.

Go west from the stiltstrider, along the path and past a tomb (to your right).
It's up some stairs to your left, but it is quite a way.

I still couldn't find it

It is located at the red X: http://i118.photobucket.com/albums/o90/plutocruel/Capture8756487.jpg?t=1283999153
Just to the West of Molag Mar.

If it is not there, double check that you have activated the esp.

Oh thanks Pluto thats really helpful