Balkazar's Staff
+1 wooden staff, Slow on hit
Found on Balkazar's body in his lair.

Belt of Might
24 Strength
Found in the treasure room of Balkazar's lair.

Chameleon Gloves
Cause Blindness on hit
Found on Mikquetzl's body in the sewers.

Chatkcha of Fire
Produce Fire on hit
Found on a thri-kreen's body in Balkazar's lair.

Dagolar's Dagger
+3 metal dagger
Found on Dagolar's body.

Dagolar's Wand
Control Body
Found in Dagolar's domain after defeating Dagolar.

Dark Flame
+2 obsidian longsword, Burning Hands on hit
Found in the Undermountain Castle. Secret door on the east side of the southeast building.

Derth's Wand
Lightning Bolt
Given to you by Notaku in exchange for Terror Bloom quest.

Dragonsbane
+4 metal longsword
Recovered from Kraxis after the Final Battle.

Drake Armor
+2 AC, Resist Cold
Found on the body of the wyvern master on the 2nd floor of the Undermountain castle.

Drake Shield
+3 AC, Resist Fire
Found on templar's body at copper mine one region south of Gedron.

Draketooth
+1 bone longsword, +3 Strength
Found in teleporter maze on the north end of Balkazar's lair.

El's Drinker
+2 metal longsword, Vampiric Touch on hit
Found in Gedron in Wyrmias' safe.

El's Ring
+3 Dexterity
Found in area outside of Balkazar's lair.

Grey's Scale
+2 AC (x2) metal arm and leg armor
Found on Arant's body in prisoner camp one region north of Gedron.

Helm of Contemplation
Gaze Reflection
Given by the Tari leader in the sewers for saving his daughter.

Helm of Might
+1 Strength
Gift in your house in Teaquetzl. (?)

Hornblade
+1 bone longsword
Bone sword given by the raided caravan survivors (east of the slave fields).

Light of Dawn
Dismissal
Found in the treasure room of Balkazar's lair.

Living Cloak
Inertial Barrier
Found on Dagolar's body.

Llod's Rod
Area teleport to activated obelisks
Given by the visionary in Teaquetzl.

Mirlon's Gem
Quest item
Found in one of the pots on the south end of the slavepens, next to Dinos. Give to Mirlon to escape.

Necklace of Disintegration
Disintegrate
Found on troop leader's body at oasis 2 regions south of Gedron.

Obelisk Gem
Activates obelisks for area teleport
Cedrilte - Under Chandra's bed.
Fields of Draj - Given by a slave in a small grove in exchange for escape.
Gedron - Found in Wyrmias' safe.
Red sand area - Given by Algernon, a wandering scholar.
Teaquetzl - Found at the bottom of the well.

Phrain's Bow
+1 wooden bow, Acid Arrow on hit
Gift in your house in Teaquetzl after the first village joins the alliance.

Ring of Insight
+2 Wisdom
Given by Tanelyv in the temple in Balkazar's lair after healing the slaves.

Serpent Boots
Displacement
Found in a pot in the room of one of Tara's followers in the Undermountain castle.

Shimmer Armor
+4 AC leather chest armor, Free Action
Found on Dakaren's body after saving Jasmine in the region northeast of Gedron.

Silk Armor
+3 AC silk chest armor
Given by the Outcast in the Undermountain.

Silver Necklace
Biofeedback
Found on Tara's body in the Undermountain castle.

Steadfast Ring
+3 Constitution
Given by Laussa after she joins Ssovan's new tribe.

Talisman of Venom
Quest Item
Sold by Kel in the Elven Caravan. Prevents the wine merchant from poisoning you.

Tanelyv's Armor
+11 AC metal armor (full set)
Given by Tanelyv in the temple in Balkazar's lair after defeating Balkazar.

Terror Blade
+2 obsidian dagger, Poison on hit
A poison dagger crafted in Balkazar's temple. Requires extract from Terror Bloom.

Terror Bloom
Quest item
Found on rampager spawned by tree in northwest Cedrilte. Give to Notaku, then kill Balkazar to obtain the extract.

Tynan's Heart
Quest item
Found on Tara's body in the Undermountain castle. Used to reunite the souls Tynan and Tristan.

Wand of Metal Detection
Quest item
Given by Algernon in the red sand area. Give to templar in the copper mine one region south of Gedron.
Used to locate the meteorite in the gem fields.

Wand of Missiles
Magic Missile
Found in Dagolar's domain after defeating Dagolar.

Wildwynd Wand
Confusion
Found on the Spider Queen's body in the Undermountain.

Wind Ring
Protection from Normal Missiles
Found on the body of the wyvern master on the 2nd floor of the Undermountain castle.

The Wand of Metal Detection can also be used to locate the meteorite in the Gem Fields.

I feel like there's a couple minor items OP is missing. I want to say that there's a +1 axe somewhere in the sewers that's tricky to find, for example, but my memory could be faulty.

There's one thing I never did figure out. I spent one playthrough trying to determine if there were any hidden effects on the trash the swindler in the elf caravan peddles. Obviously one of his items is the obelisk gem for the elf caravan, but I was never able to determine effects on any of the others.

Wait, that's wrong.

I think that I found one. I believe that wearing the one he says protects against poison will allow you to drink the drugged wine (also in the elf caravan) without being affected by it, but I'm not completely certain that this wasn't just a hidden save or something.

Yep there's a +1 axe in a drain near the top-left corner of the sewers. I believe you need a Thief to reach it, so that they can scale the wall to reach the drain.

You're right about the amulet vs poison - aside from that little quest the only useful thing he sells is the obelisk gem.

I played this game way too much back in the day.

I was never able to find a use for the Sword Blank item, either, though that I suspect is either trash or simply never had its intended use completed. It's found in one of the shadow temple entrances, the one near the shade with the green heart I believe.

I think you're right, the sword blank is not useful in any way. There are a couple of weapons that can be forged in the game though.

Actually I re-read the hint book and have to correct myself - Kel does sell a few useful items:

There's a hint book? Is that part of the GOG package?

I'm gonna level with you, I actually didn't know that, because my memories come from an ancient CD-ROM version of the game and I didn't get a hintbook with that.

The reason I mention it is because the talisman of venom is largely indistinguishable from his other stock, which is mostly crap.

Yeah, gog has it for download. I think I also got it as part of a similar CD release a long time ago too. Really handy as there are a couple of little hidden things in the game which I never would have figured out for myself :)

There were at least 2 boxed set versions of the Masterpiece Collection, one that had all yellow on the CDs and one wiht different coloured CDs for each. One of them (I don't remember which) had Hintbooks for the Dark Sun games and the other one didn't.

I think I owned both of those around 20 years ago :)

Yeah I'm going for named and unique items here. It's a pretty long list as-is.

It's funny because I was hell-bent on finding a use for the Sword Blank as well when I was a kid. But the item is completely inert to all the probable characters and forges or workshops in the game that it might interact with.