A model wearing an Elven Cloak has the Stalk Unseen special rule. Additionally, models targeting an Infantry model wearing an Elven Cloak with a Shooting Attack suffer a -1 penalty when rolling To Hit.
Armour:
A model wearing armour will add 1 to their Defence characteristic.
Where a model is listed as having a type of armour in its profile, then the improvement in its Defence characteristic will already have been included in their profile. If a model has the opportunity to upgrade one type of armour to another, then they will replace one with the other - they will not get the Defence benefits of both.
Hand Weapon:
These are the standard kind of weapon a model may carry, and is anything wielded in a single hand, such as a sword, an axe, a mace or all manner of other weapons. The exact kind of weapon being carried doesn't matter; all hand weapons function the same. A hand weapon has no specific rules attached to it.