Demonspell
Explorer
Didn't have time to print the full solution last night, but:
1. Human, Banded, Long Bow, Agate, Hipogriff
2. Half-Orc, Studded Leather, Dagger, Sapphire, Asperi
3. Dwarf, Chainmail, Flail, Ruby, Unicorn
4. Elf, Splint, Staff, Emerald, Pegasus
5. Gnome, Plate, Great Sword, Diamond, Dragon
Elf gets the Magic Staff.
Ok, so the logic works. That is the same solution I get.