Janos, I've read your character background. I know what, and why, you're talking about. The thing is, I'm not changing my character. I designed my character after an idea I got right after the starting level was announced. I wasn't sure if I would have the time to play then, so I didn't say anything until later. Yes, in retrospect, I realize that
if my character finds out he will be obliged, morrally, religiously, and by his background and personal beliefs to bring you to justice. So, I suggest you do one of two things if you're so worried about it: 1) Do a really really really good job at not letting my character know about your background (as a forewarning, he has detect evil at will), 2) Change your character. It's up to you.
As for what item creation rules Kalanyr laid out, it was basically only two differences from what is in the DMG (p243).
1) Extra abilities (beyond the most expensive) on an item that counts against the limit of items worn cost double.
2) The only cost reduction able to be used is that of alignment restriction. I gathered that this was because Kal has his scale of alignments, and if we deviate from our stated alignment, then we will change alignments, and be unable to use the equipment. (this should not be used on every item you have, maybe just one or two depending on flavor)
P.S.- I have read your history. Very impressive for a non-evil character, murdering your family
twice...
