Ok I'm not going to email a correction from work so I'll post it here instead.
This item drops from the mob "Haunt" in Kuftal Tunnel (Level 63-66). Combined using clothcraft (possibly woodcraft as a sub) around level 81 with the item "Spectral Crimson" which will drop off of Phasmas in Uleguerand you can create a "Haunted Muleta". This item is used to pop "Geush Urvan" in Uleguerand at (F-8).
Please note that he is a nasty little buffalo that will beat up a paladin tank in record time. He needs to be blink tanked. His drop is the "Toreador's Cape", level 72 back equipment, 7 defense, 9 evasion, +4 enmity, all races, all jobs. It is also possible that this cape increases the likelyhood of being hit with a critical hit.
Yeah thise stuff seems to be worth some major gil. Someone on Pandemonium was selling this sucker for 15 mil in Jeuno. Lemme tell you I'd die if I had that.
I don't think it is worth 15mil although I have seen it selling for a few 100k. Judging from the sound of it and if Panda's economy is anything like Gilgamesh's, the price was probably based on that of shining cloth which uses the same graphic. It was probably a joke.