I have put together this line of text to try and improve my Ayleid. However it would appear that our knowledge is still very flawed on the matter, the resources I found are sketchy and skeletal.
Anyways how did I do?

Va Garlas Ageae, goria as varlais, an Pelinal barra an Karan Oiobalae.
In the caverns of lore, obscured by stars, the glorious knight wear the armour of eternal power.

Is this anyway correct, what a my mistakes?

The biggest mistake you made is asking if you're even correct. Considering what Ayleid Oblivion has shown you are, but is it relevant? The Ayleid language in itself is incomplete and poorly developed that you shouldn't bother.

I wouldn't subscribe to the "shouldn't bother" part, I found digging in the Ayleids texts to make a "dictionary" (or more correctly: an assortment of words, phrases and their translation) to be fun. However, and there I agree with you: much that we currently know about the Ayleid language is incomplete (if something "complete" actually exists - which I doubt) and much more - especially the grammar - is conjecture. All good and fun conjecture, but still more a guess than knowledge. And some parts of the language are straight from Sindarin or Quenya.
I wouldn't keep anyone from doing some studies in the Ayleid tongue, but he should have above restrictions of the language in mind.

So much to that. I'd say the sentence looks okay to me, but to me, the most important part is that it looks Ayleid and sounds cool - and isn't that the true purpose of it?

The language is complete, your source isn't.

I don't believe it's ever going to be completed. Frankly it would be nice to develop it without Sindarin, Quenya, or Hebrew words just substituting for English words, but I understand the devs aren't being paid for creating a language. So, I have no reason to lament over that fact. Still Al Bhed was more interesting, but I find it as ridiculous.

Sorry, the Ayleid vocab compilations are not all too useful.

Just learn Sindarin, or Queyna, they're much more complete. Pick up The Return of the King, perhaps the silmarillion, too. And look online.

I never even got to the end of the Silmarillion, not to mention learning a landuage from it! :facepalm:

Thanks for the replies.

The language is complete, but we have no sources of the entire language (or even alphebet for that matter).

And why is Ayleid and Dwemer runes look so alike?

Because they're Mer language.

But they look nothing like the normal language that the people of Tamriel use.

Because the language isn't exactly the same as the original Mer language? And it can probably change due to differences between the different tribes and so on.