But Shrink answers those questions. No, the pixie doesn't have to carry it, but then it reverts to normal size after the pixie's next extended rest. The game statistics, including weight, remain the same.
In simple terms, shrink all your equipment, treat it as if you were small.
Yes, but the pixie can't use it (it's two handed, and the pixie treats shrunken weapons as if it were a small creature using the regular-sized version - get it? - it's a little convoluted), and it's an improvised 1-handed weapon for a non-tiny creature. So that's a pretty theoreticaly and meaningless 'yes.' ;(Since items retain game stats when you use shrink on them, does that mean a pixie with a pixie-sized longspear has a reach of 2?
Did you not READ the power? Because no, all those are answered.
Did you not READ the power? Because no, all those are answered. "While shrunk, the target keeps its game statistics, such as damage dice and weight". Damage is the same. Reach would be the same, although there aren't many weapons you can wield that would have reach, because you use the Small restrictions. A shrunken weapon is a improvised one-handed weapon to a non-Tiny creature, so there's no point in shrinking items for the rest of the party unless they are also pixies.
It really is simple assuming you actually, you know, read the power text. Since it mentions every issue you've brought up so far specifically. There may actually be issues with it, but you haven't brought any up yet.
Dice4Hire.Who are you actually (rather angrily) replying too?
Pixie vampire named Mosquiote? It has to be done.