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Hi, I am a new GM on the eve of running SD. I am allowing my players to use items from MIC but am wondering if that's a smart decision in the long run. My GM in my Crimson Throne campaign has disallowed MIC because he think a party equipped with MIC items will eventually overpower NPCs that are designed without them. So I am soliciting opinions from GMs, players, and Paizo folks on this issue.
Also, if I do allow MIC, what are some items that--for the sake of executing the campaign well--should be banned? Since I am restricting my players to make classic Pathfinder classes, psionic items are automatically disallowed.

Anguish |

In my experience, player tactics far outweigh magic items for balance purposes. Most of the stuff in MIC aren't significantly more powerful than equivalent items from any other source, but rather add width to the array of what's available. Sure, wizards can buy a pearl of power but what can a sorcerer do? MIC offers an identical priced item that's good for spontaneous casters. So what? How about items that take into account that there's such a class as "scout"? Great! Tome of Battle is in play? There are even items for ToB characters. You use psionics and want more than the handful of goodies in XPH? Great!
So hey, my point would be that MIC shouldn't be disallowed. You might want to place a limitation on what's casually available, such as saying "magic item sets... come to me and we'll work out how such a thing might get worked into the game in-character".

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You can always switch a few of the items that the NPCs hold for some MIC items as well, if you're worried about balance of power. And really, the book as a whole is reasonable in its power levels. Some things are a bit odd though--for example, the beastform armor property, I think it's called, which basically does the exact same thing the wild armor property except at +2 enhancement rather than +3...
I just tell my players a general, "if it talks about psionics or incarnum, it's out. Apart from that, I'll give it a look, and think about it." Just think about whether you'd like that item to be in your game... and if you do, realise that it is then open to the NPCs as well as the PCs. Some things (like the belt of healing especially!) have been really appreciated in the past though.

KnightErrantJR |

One thing that does occur to me though, is that your average fighter shouldn't know there is such a thing as, say, gauntlets of sword throwing, just off hand. I'd recommend doing something similar to the "finding" roll mentioned in the Magic Item Compendium, but working this way:
Knowing about a given magic item = DC 15 + Item Level to know such an item exists (Knowledge Arcana check)
If the characters know it exists, then they can start looking around for it in a place that might have it.

Anguish |

One thing that does occur to me though, is that your average fighter shouldn't know there is such a thing as, say, gauntlets of sword throwing, just off hand. I'd recommend doing something similar to the "finding" roll mentioned in the Magic Item Compendium, but working this way:
Knowing about a given magic item = DC 15 + Item Level to know such an item exists (Knowledge Arcana check)
If the characters know it exists, then they can start looking around for it in a place that might have it.
Depends on the campaign setting and the player group, I'd think. I've been playing 3rd edition since it came out and I'm frankly tired of the usual toys from the DMG. After eight years, I'm tired of the core classes too. If I want to play a somewhat different character with different tactics and MIC lets me, why limit me? Remember it's not the character that's playing the game, it's the player.
That being said, sequestering MIC items with groups that are reasonably new to the game, or in a low-magic setting, I'd agree with. Thus "depends".

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Every player in my games has anklets of translocation and belts of healing from 3rd to 9th level. It never fails.
When I started using the same items on the NPCs/BBEGs my players were surprised but knew that what was good for the goose is good for the gander.
What I did was find out what items are the most popular with the group and try to outfit some of the baddies in the same manner.
Also I am now limiting what is casually available.