(Psi)SeveredHead
Adventurer
Invisibility is not so difficult to defeat. It neither negates sound, nor smell. It does not prevent the disturbance of the surface being trod upon by the subject--mud, dust, dirt on the floor or in the air etc. would easily show an invisible spy.
Or deliberately squeaky floors

See the Dungeon Masters Guide (1E, pp. 59-60). The section of The Hobbit describing Bilbo's experience in the elven forest city is more accessible and just as descriptive.
You might want to post that, since the 1E DMG isn't exactly widely available.
What's the point of the passage? I'm pretty sure Bilbo wasn't using his artifact ring to sneak around...