I only have one magic item to suggest, because I only ever made up the one... Not that I ever used it... But I really liked the idea of it.
Chelle's Wand of Magic Pies
Radiates both Evocation and Conjuration
For all intents and purposes, this appears, to the trained eye, to be a wand of magic missiles, except that it is shaped like a spoon. (Like a wooden mixing spoon.) When the user holds the wand and speaks the command word ("Duck") up to three Banana Cream pies will fly from the wand and strike the target unerringly as per the Magic Missile spell. The user can choose whether to shoot one, two, or three pies at a time, but one charge is taken away for each pie. The user may also split (tee hee) the pies to multiple targets as per Magic Missile. The pies do no damage (physically) and taste delightful, however, if, and only if, a target is struck with all three pies
at once, there is a 75% chance that the target will fall down from the impact. (They strike in rapid succession and with increasing velocity.) At which time, if the target falls, "Pie Spooge" will make it difficult to move in the area around the target as per the grease spell. ((Although I suppose you would only need one pie to break somebody's consentration or interupt the casting of a spell... And, depending on the disposition of the target, it may also have a sort of non-magical Taunt effect.))
So that's my suggestion for a magic item:
As far as other stuff, I'd like to suggest a few bits of "flair"...
In the July 1994 issue of Dragon (starting on page 31), there was this great little article called "Trifling Treasures" (by Halina Adamski). The article talked about how, whenever we loot bodies, they only ever seem to have some money and a few pieces of equipment on them. But if you go through your down pockets, or backpacks, purses, beltpouches, etc... There's not just money, but also things like ticket stubs, receipts, lint, a d20 you thought you had lost...
The rest of the article consisted of five tables ("Food", "Plants and Animals", "Ornaments", "Miscellany", and "Cryptic Notes") of stuff that you might find when you kill something or find around a camp/home.
Some of my favorites from each category, these might be good for the
memento vivi (What a great phrase!) that Len was talking about.
Food:
- A small wicker strainer filled with tea leaves. (50% chance used)
- Cookie crumbs and a dead beetle.
- An oiled cloth containing a chunk of smoked fish
- An awful-smelling hunk of blue-green-gray fuzz (roughly at the center of it is a bit of cheese)
- Potion vials containing cordial or liquor
- a number of small, translucent red items, of a rubbery texture shaped like adventurers... Cherry flavored.
Plants and Animals:
- A handfull of fur
- A daisy with two petals left ((Awwwww...))
- A carefully folded bit of parchment containing a very pretty (dead) butterfly.
- A number of live mice in a small cage.
Ornaments:
- A wig
- A brass tin, the lid polished to a mirror shine, the inside holds a small soft brush, and pinkish powder.
- A lace garter adorned with satin rosebuds
- A rolled up pair of damp, filthy, wool socks.
Miscellany:
- A pair of six-sided bone dice (Or six "oddly shaped" bone dice...)
- A brass key
- A bit of partially started crochet with a crochet hook and a bit of yarn
- A single playing card (Most likely an Ace of Spades/Swords... But it could be anything.)
- A lock of hair, tied with a ribbon.
- A wooden token "Good for 1 free drink at The Bowels of the Earth"
- A small portrait of a "very attractive" member of the opposite sex, and same race, of the bearer
Cryptic notes:
- "Take the first wight after the well" ((Don't correct me on spelling for this one, I meant to do that.))
- A smeared note "Ungodly treasure!" is the only legible part. ((Well... You might want to slip something in there about Modrons...))
- "The object in question is at the miller's"
- Song lyrics. (possibly about the Party's past exploits... They've never heard it, but it's quite popular... Somewhere.)
Slap a Mystal's(?) Magical Dewomer on any one of these things (particularly the moldy cheese), sit back, and enjoy the show.
Sorry, I couldn't resist! 
