Amulet of Heartheal Location - Morrowind
Requirements: Levitate/Jump to navigate the terrain near dungeon
The Amulet of Heartheal can be found in the dungeon of Vemynal which is one of the few locations in the game found inside the Ghostfence. You will be tasked with coming to this dungeon during the final quest of Morrowind's story; but like with all things in Morrowind you can technically visit this location at any time and retrieve the amulet.
Dagoth Vemyn is the enemy you're looking for inside Vemynal since he carries the amulet with him along with an Artifact called Sunder. You can find Dagoth Vemyn in the Hall of Torque section of Vemynal on the bottom floor. As aforementioned in addition to the Amulet of Heartheal you'll also find Sunder on his corpse, a powerful weapon that is used in the final quest of the game.
In the room adjacent to Dagoth Vemyn there will be a skeleton enemy named 'Beldoh the Undying' and he'll be carrying a unique enchanted shield called Blood Feat Shield. Chances are you already have a shield better than this one but if you don't - this shield isn't half bad.