My personal house rule is to have players provide me with a 25-word narrative describing the powers of any magical items possessed by their heroes. I prefer this be written up at character creation, but it can be left for later development should the player lacks a clear sense of what he or she wants an item to do. This is where the idea of "cool but ambiguous references" comes in. In short, have a blast making things up... it worked in "Heart of Duckness", did it not? ;)
What the players are not allowed to determine is the true potency of an item, i.e., the actual ability rating of any powers it possesses (powerful items all have resident otherworld beings, in my opinion). The hero's ability rating with the item represents his or her skill or knowledge in wielding the item's powers effectively, and should function much like calling upon the aid of a follower in my mind.
-- Michael Schwartz raconteurx_at_...
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