http://www.tamriel-rebuilt.org/?p=books§ion=183041
I don't know which mod added this book to Oblivion, but I think it was Oscuros Oblivion Overhaul. I'm almost sure it didn't exist in-game before I installed mods.
Anyway, when I search for it on the Imperial Library and UESP, it doesn't show up, and I can only find it on other sites.
At first I thought the book had been taken from Morrowind, but that doesn't seem to be the case.
Does anyone know who wrote this book? It looks rather professionally done by me. And if it's written by a developer, is it canon? Does anyone know?
Thanks in advance!
No, it's not. If it's not listed on The Imperial Library under the book sections, it's not canon. That doesn't mean it's wrong, though, just that Bethesda could define it themselves in later games without reference to this, and this source would cease to be credible.
The standard test of canon is "if it violates Bethesda defined lore, it's not right. If it doesn't, it may be right, but it's still not canon."
It is a very good book, though, and uses a lot of good canon information to predict something. So you can treat it as canon, but recognize that it may not stand as canon if Beth were to change it (which is highly unlikely at this time).