?

http://www.uesp.net/wiki/Oblivion:Daedric_Quests

Correct me if im wrong but I swear this is a reference to "Creeper" from morrowind

" I'm Barbas, the Hound of Clavicus Vile. Not that I've always been a hound, or always been called Barbas. I've also been a Redguard. For a while I was a scamp, making deals with Orcs."

found here http://www.uesp.net/wiki/Oblivion:Clavicus_Vile

why is thisn not on an easter egg page ?

Because it is not an easter egg. It's part of the lore. It is instead mentioned on http://www.uesp.net/wiki/Morrowind:Creeper.

wouldnt this item http://www.uesp.net/wiki/Oblivion:Ring_of_Namira be the best one to give up to teh blood of the daedra quest ??? it effects look useless and can be obtained at level 5

What to give up always depends on the character. I've given Azura's Star away with a character than never uses weapons, and so never has anything to recharge. The Skeleton key is useless to a mage who has a "Open Very Hard Lock" spell available. I usually choose the Wabbajack because it's available at low levels and loses its novelty quickly.