Magical Items are always more fun when they have a little curse/requirement thrown in. A magic blade that needs to be coated in the blood of children to open is full abilities. A crown that brings wealth to its holder, at the expense of the poor (you are named the sole inheritor of several life insurance policies, all held by factory workers who died in a "terrible accident at their factory, or a error in the computer has you collecting half the paycheck of over a hundred already broke wage slaves). A large rock/alter that heals whoever is placed upon it, but transfers the wounds and sickness to multiple people within mile. And so on.
Other magic item ideas:
Minor power focus (rating 1 or 2) that instantly bonds with whoever picks it up. While the focus in question isn't impressive, the fact it works instantly, and works with other foci, is impressive. A lot of people will want it to duplicate the effect.
A weapon focus crafted out of an impractical weapon (massive over-sized sword, anything in a "fantasy weapons" catalog, a riding crop, a thimble)
A "lucky rabbit's foot"
A wishing well that grants real wishes
A necklaces that makes the wearer look like anyone the viewer expects to see (which can be fun in a crowd)
Sixteen rings linked to a crystal, so that anyone who holds the crystal can see through the eyes of the ring bearers
A belt with several tiny cages attached to it. Each cage can hold a spirit that maybe be released to several the wearer
As the belt above, but each cages holds the spirit/soul of a person, and you can command them through the belt (or just threaten them with killing the soul, no matter how far away you are)
A tablet inscribed with a series of tasks, some one which have a lines scratched through them. The holder may demand a task to be completed, and a dragon arrives to fulfill the task. There are only a handful of tasks remaining
A necklace that prevents the wearer from bleeding. It's not well liked by the blood mages
Honor duels
With epic fights, its always location, location, location. Think of a coll location, and have the brawl occur there. Some examples:
Between the legs of a herd of dinosaur-like awakened creatures
In/on a building that is collapsing
Several speed boats that keep slamming into each other at high speeds...during a storm
In the middle of a tornado
While two or more great dragons battle around you
Over lava is an oldie by goodie
In a alligator infested swamp/pool
On a factory conveyor belt, a la Indiana Jones and the Star Wars prequels
Hope these help
