If the caster is holding the enchanted item does she get to make an attack with the item in the round the spell was cast? I believe she would have to wait until her next round to make use of the item having already used her standard action to cast the spell.
You are correct - the 'free attack' is only for touch range spells. Technically it could be argued that flame blade and produce flame wouldn't work either, but I haven't seen those denied an attack the round it is cast.
