I killed two Dremora Lords during the "Pieces of the Past" quest in Dawnstar. Both had Deadric armor (or what appeared to be.) I couldn't loot it - it wouldn't give it to me. What level do you have to be to start using it? I think I was level 38 or 39 at the time. (I know - you probably have to be level 40 LOL) I'm now level 41. I'm anxious to get my hands on some of this, but this is the only time I've even been exposed to Deadric. Wait.....I also had another quest in the past (I can't remember which it was) where I had to go to another plane - I think it was something with Hermeous Mora. Anyway, there were like four or five Dremora lords there too, which left me empty.
I want this armor!