Thanks a lot for this. Was looking for anything enchanted with "of Beacons" and would never pop up, so I used this to give a Lloyd's Beacon to all my non-mage characters.
The limit in charges appears to be 63, trying to go above that results in a "Broken Cursed" item, guess the devs didn't want us to go all in on the greedy side.
The best place to get rank 2 magical items (like the "of beacons" item you were looking for) is to save at the end of the week, then enter a shop twice so that the second time it's a new week and the shop has new inventory.
For whatever reason, enchanted items of this rank have very few places they can appear as random treasure, but are not that rare in shops, so shops are really your best bet here.
(I don't know which towns are best for this purpose.)
The Recharge Item spell can raise item charges to 63, but will stop at this point. For the "broken cursed" situation you've been encountering, I am guessing that, in order to save space, the developers used the two higher order bits of the charge count to store the "broken" and "cursed" flags. If you put a charge count between 64 and 191 (inclusive), the item should be either broken or cursed, but not both, with the switch happening at 127.
(By the way, in World of Xeen Recharge item doesn't work on potions or scrolls, and won't work onitems that cast the Recharge Item spell; these restrictions are not present in Isles of Terra. Also, note that World of Xeen will never put high level spells on rechargeable items, which makes the shop in Olympus rather disappointing.)