Because you will get to it at some point, the staff you found is the following (identified by Lord Maximilian):
Staff of Illusion:
The staff can cast the following spells:
-Disguise self (1)
-Minor Image (2)
-Major Image (3)
-Persistent Image (5)
It can cast up to 100 levels of spells in a week, and it can maintain those illusions for a week each. The illusion may not move beyond 1 mile of the staff, or it is lost. A Use Magic Device check DC 15 must be made each time the staff is used, and it can only be used by dragons (or dragon blooded creatures).