Elven Cloaks & Hiding

[Salthorae]

Just to quote the SRD on the "actions required" for Hide and Spot:

Hide

Action: Usually none. Normally, you make a Hide check as part of movement, so it doesn’t take a separate action. However, hiding immediately after a ranged attack (see Sniping, above) is a move action.

Ok, but the SRD also says this about Hide:

Check: Your Hide check is opposed by the Spot check of anyone who might see you. You can move up to one-half your normal speed and hide at no penalty. When moving at a speed greater than one-half but less than your normal speed, you take a –5 penalty. It’s practically impossible (–20 penalty) to hide while attacking, running or charging.

So you've effectively negated that Cloack of Elvenkind while walking around. However, I believe that the OP was looking for ways to increase the power of the CloEk... I would say adding in a displacement while moving would do that.

So if you're hiding, no displacement (ie. the Evil Rogue sneaks up behind you, he could attack w/o the displacement effect, but if you're moving around (fighting, running, walking) they could have a slight (I'm more inlcined to 5% now) displacement (side)-effect of the CloEK.