Thanks to everyone for their suggestions.
Here is what I ended up doing. I put it on the right hand wall shelf in the back room. It is standing upright leaning against the wall. On either side I have a skull facing away from the plate, one to the right, one to the left. (Gettting those skulls positioned was HARD!) I then put two sprigs of nightshade in front of it. It looks very nice.
I didn't use any of the clothing suggestions since I wanted to display those on mannequins. I have three DB related mannequins. One displays shrouded armor. Another displays shrouded robes. And the third displays Nazim's clothes. If I can get my pickpocket skill to 100 (it is at 98 now) I am going to go get a Penitus Oculatus outfit from one of those guys up in Dragon Bridge. Or I just might kill one and take it off his body.

I am having real problems tyring to display the Blade of Woe. I tried putting it in a display case in a HF house, but it would not behave. So I went to Vindrel Hall and tried puting it on weapon plaque, but it didn't like that either. And when I put it in a dagger case, it ended up moving around. So now it just sits in a cabinet. I'll have to work out something for that.