Enchantments need not only provide edges to the user (or handicaps to the opponent). They can provide bonuses or APs (like a 'follower') as well. Or they can provide an ability. A 'Lightning Sword' could provide the ability to lob lightnings around, or simply an edge or a bonus when hacking at your enemies. Or it can provide you with APs when you fight during a lightning storm. Or all of the above. Depends on the wording really.
If he wants a 'magic sword' he needs to be more precise; what does the enchantment _do_? WHen you know what it does, it becomes far more easy to apply the bonus/edge apropriately. This is a general recommendation for enchanted items.
The 'torc of mighty rulership' is quite easy IMO. The enchantment applies when the bearer is trying to rule. I would make it a bonus since i figure it gives the bearer some measure of authority, not that it makes him a better ruler.
As to the strength of enchantments, it depends on the might of the enchanter and the needs of your story.
-- - Mikael Raaterova [.sig omitted on legal advice]
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