The item of Regeneration that he found is (are?) Gauntlets of Regeneration, and they can be bought for 50045 gold at ___'s Quality Provisions in Alten Markmont, Black Marsh.
I'm also seeing other pieces of armor listed in the UESPWiki which are items of Regeneration, such as two listings for Steel Helm of Regeneration, an Iron Pauldron (L) of Regeneration, a Dwarven Pauldron (L) of Regeneration, a Steel Cuirass of Regeneration, a Greaves of Regeneration, four listings for Boots of Regeneration, and a Dwarven Boots of Regeneration.
There are no weapons of any type listed in the UESPWiki which are items of Regeneration. But there are shields of Regeneration-- two listings for Buckler of Regeneration, a Silver Buckler of Regeneration, two listings for Kite Shield of Regeneration, and a Silver Kite Shield of Regeneration.
So it looks like Regeneration might be an enchantment that's normally put on pieces of armor or on shields rather than on weapons.
In later Elder Scrolls games the enchantment might function "automatically," similar to way magical items which boost the various stats work in Arena; but I'm pretty sure that in Arena you must "use" an item to cast its associated spell, then cast it again later after the effect has worn off.
One advantage to using enchanted gear or other magical items to cast spells is that they can be used by any type of character, regardless of whether or not the character's class is a natural spellcaster, and regardless of whether or not a natural spellcasting character has enough spell points to cast the spell, as long as the enchanted item still contains 1 or more charges.
Even if your character is a natural spellcaster, it's a good idea to equip a mark, crystal, bracers, and ring that can be used to cast spells which might mean the difference between life and death in situations where your character is silenced, or has run out or been drained of spell points and has no more Potion of Restore Power.
Natural spellcasters can't use enchanted armor, since only plate armor can be enchanted, but they can use an enchanted shield as another way to cast spells when they're silenced or out of spell points.
And of course there are potions for "casting" certain spell effects, although there is no Potion of Regeneration or Potion of Troll's Blood in Arena.
As far as creating custom Regenerate spells with the Spellmaker, you can set the number of hit points gained to any value from 1 to 99, set the number of rounds between gains to any multiple of 5 from 5 to 60, and set the duration to either 30 or 60 rounds per level. So you can't regenerate any faster than once every 5 rounds, but you can regenerate as many as 99 hit points every 5 rounds, which would be pretty awesome! I'm going to have to make a "Super Regeneration" spell after my Nord Healer finishes her current town quest and gets back to Rimmen.



