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What level does an intensified (Level Increase: +1) fireball prepared in a 3rd level spell slot count as with the Magical Lineage trait?
Metamagic: At what spell level does the spell count for concentration DCs, magus spell recall, or a pearl of power?
The spell counts as the level of the spell slot necessary to cast it.
For example, an empowered burning hands uses a 3rd-level spell slot, counts as a 3rd-level spell for making concentration checks, counts as a 3rd-level spell for a magus's spell recall or a pearl of power.
In general, use the (normal, lower) spell level or the (higher) spell slot level, whichever is more of a disadvantage for the caster. The advantages of the metamagic feat are spelled out in the Benefits section of the feat, and the increased spell slot level is a disadvantage.
Heighten Spell is really the only metamagic feat that makes using a higher-level spell slot an advantage instead of a disadvantage.
When you apply metamagic feats to this spell that add at least 1 level to the spell, treat its actual level as 1 lower for determining the spell’s final adjusted level.
I want to empower this spell with a rod; do I use a lesser or normal rod of empower spell?
My thoughts are that the spell's final actual spell level is 3rd because it was prepared in a 3rd level spell slot. It's normal spell level prepared without metamagic is 3. It's actual level after applying the metamagic adjustments is also 3. I could therefore use the lesser empower rod. Is this the case?
Counts as third level.
Because the trait effectively reduces the metamagic level by 1, then a single +1 metamagic is effectively a +0 metamagic level. So fireball is a 3rd level spell for this caster both in spell slot level, effective spell level, and spell level.
I have to agree that the lesser rod is sufficient. If it's not, what actual advantage is gained by the Magical Lineage trait? The RAW seem really clear here, and to match up with RAI (e.g. everything having some purpose).