If I disable Merged_Objects.esp, the bug goes away. Testool.log is as shown below, any ideas? BTW I've seen something similar before with imperial templar cuirass causing your entire torso to disappear!
CLOT expensive_glove_left_ilmeni
> Morrowind.esm
MODL c\C_glove_expensive1_GND.NIF
FNAM Ilmeni's glove
CTDT Type=6, Weight=1.00, Value=http://forums.bethsoft.com/index.php?/topic/1202952-part-of-my-clothing-is-invisible/10, Ench=50
ITEX c\tx_glove_expensive1.tga
INDX/BNAM 7 / c_glove_expensive1
INDX 9
> UFR_v3dot2.esp
MODL Alais\c\glove_ilmeni_L.nif
FNAM Ilmeni's glove
CTDT Type=6, Weight=1.00, Value=http://forums.bethsoft.com/index.php?/topic/1202952-part-of-my-clothing-is-invisible/10, Ench=50
ITEX Alais\c\c_glove_expens_s_L.dds
INDX/BNAM 7 / _AL_c_glove_ilmeni
> LeftGloves_Addon_v2.esp
MODL Lefty\C_Glove_Expensive_L.nif
FNAM Ilmeni's glove
CTDT Type=6, Weight=1.00, Value=http://forums.bethsoft.com/index.php?/topic/1202952-part-of-my-clothing-is-invisible/10, Ench=50
ITEX Lefty\TX_glove_expensive1_L.tga
INDX/BNAM 7 / c_glove_expensive1
INDX 9
----------------------------
MODL Lefty\C_Glove_Expensive_L.nif
FNAM Ilmeni's glove
CTDT Type=6, Weight=1.00, Value=http://forums.bethsoft.com/index.php?/topic/1202952-part-of-my-clothing-is-invisible/10, Ench=50
ITEX Lefty\TX_glove_expensive1_L.tga
INDX/BNAM 7 / _AL_c_glove_ilmeni
INDX 9
----------------------------
Object has been merged but some information has been lost due to a conflict