Rufio is located in the Inn of Ill Omen, which is north of the city of Bravil in The Elder Scrolls IV: Oblivion. To find him, you need to go into the lower level of the Inn by using the floor hatch and enter the room at the far end of the hall. Rufio is usually asleep in this room and is very weak, making him an easy target for the assassination quest "A Knife in the Dark," which is the initiation quest for the Dark Brotherhood guild
. In summary:
- Location: Inn of Ill Omen, north of Bravil
- Access: Lower level via floor hatch
- Room: Far end of the hall in the basement
- Quest: "A Knife in the Dark," where you must kill Rufio to prove your worth to the Dark Brotherhood