Storminator said:
Well, I have no item for you to create, die_kludge, but I'm going to go get the book now. Happy? 
And if there's no XP cost, is there something else that substitutes? And more importantly, is there some failure mechanism, so there's a reason for a cursed item?
PS
Absolutely, Storm, more than one thing.
There is the "Time and Money" limitation. This is essentially "no limit". It's the default. If you've got the time and money, you can do whatever you want.
The second is the "Component" limitation. This is the one I use. If you've got the right components, then you can make it. I can control whatever it is they want to create by controlling the availability of components. There's an enourmous chapter on components that Kithmaker calls "Brilliant".
Then there is the "Experience" limitation. This is the DMG system. *blech*
The "Inner Strength" limitation. This essentially means that there's only so much that someone can make before the items become unstable. There are three types "Escalation" where you calculate the power of the item made and add it to all the power levels of all the other items you made that level, and if it exceeds some base, then it exceeds a safe zone, and incurs instability. The second method is similar, but utilizes the XP method. The third is similar to the "escalation" method but is unique per individual, not the world itself.
The fourth is "power level" limitation. The first method here is just discrete levels which just controls the number of things that can be made per level. The second method reduces the Con of the creator (suitable for low-magic campaigns), the third is a stairway effect, wherein the creator must have made an item of each lower spell level before creating new and more powerful items.
There's a whole chapter on item instability. And every world has a "Safe zone" limit, so if an item exceeds that limit, it could incur instability. There's a gradually worsening effect the more over the safe zone it occurs. The safe zone is modifiable based on your own world, so you can tailor it however you desire. Low magic worlds have a low safe zone, whereas a world like FR would have a very high safe zone.
It's all tailorable to your specific campaign, and the level of magic in your world.