Most fun and unique loot for players

[RogueWizard]

In my experience regular loot is exciting, but gets mundane quick. A +3 sword is just a boost in numbers, and in the end isn't very interesting. I love giving players and receiving items with unique or interesting abilities.

Some of my favorites include,
Gloves which can turns small items into mini grenades (think gambit, limited uses per day, minor damage unless used creatively)
A staff that can use surrounding fires to cast fire spells (Keeps the environment important)
A ring which allows a player to reach through space and interact with something at a distance (Think making a mini portal connecting hand to other spot)
A motion sensitive explosive device (Damage is minor, but can be used as part of a trap, slowing pursuers, destroying a bridge as people cross)
Earring that allows you to create rough mental images of areas with sound (think echolocation, but requires heavy concentration, aka not useful in combat)
A mask that alerts you when someone recognizes you. (Helps to know when to go to plan B or retreat.)

Absolutely none of these items except possibly the staff do significant damage directly, but they can all be used in creative ways and sometimes force players to be mindful of their environment. These are the type of items I love and anybody can borrow my ideas.

I'm hoping other forum dwellers will share some of their creative items. Just be warned, I will totally steal the most juicy ideas.

[Sam K]

Unique loot is fun, but for it to really shine, it needs to let the person who gets it do something meaningful (either fluffwise or crunchwise). Otherwise it risks becoming a gadget or novelty item that people forget about.

I really like your ring idea; I'd love to have it combined with letting you take a standard action at a distance. For a martial adept, that could let you deliver a single strike at range. Not terribly powerful (atleast if you restrict this use to a few times a day), but it adds utility (range to classes that usually lack it) and a strong visual element (the swordsage thursts his blade into a portal, and it comes out 50 feet away, stabbing the bad guy in the back).

A funny thing can be to take modern gadgets and "refluff" them into fantasy items: large black obsidian earrings that lets the wearer talk at over great distances with someone wearing another earring like it, but ONLY if you speak in a specific, slightly louder and very annoying tone of voice. Watch how long it takes for your players to realize they've become the jerks that talk obnoxiously into their bluetooth headsets! (bonus points if this increases the chance for a hostile encounter)

[Deadasadoor]

I once gave an awakened bear PC a longsword that could fuse itself to his paw on command, as we ruled he couldn't hold weapons due to having paws. I did make the mistake of having it act like the weapon grafts from Fiend Folio, in that they counted as both a natural attack and manufactured so it got iterative attacks while also benefiting from Multiattack.

[Thurbane]

My g/f (one of my players) has an owl ring she really loves IRL, so I'm going to drop a ring into the game as loot that acts as an Amulet of Wisdom +2, and allows you to summon a giant owl (as per SNA) 1/day.

I used to do a lot more custom loot in earlier editions. One of my faves was a small fiend shaped jug with a large mouth, that required fresh blood poured in to activate various effects (some minor necromantic effects, and also a Summon Gargoyle effect). There was a chance each time the gargoyle was summoned it would be permanently bonded with the activator of the jug, and that they would share each others damage.

[daremetoidareyo]

I ran a city campaign years ago with two PCs, a wizard and a ranger. The ranger couldn't walk around the city in armor so I had a first level adventure to save some gnome craftsman's brother. The gnomes were inventors but had little money, as they had no respect in the city, and couldn't afford to join any guilds. Once saved, they told the PCs that they needed a week to pay them. After a week, they presented a magic scroll that their uncle sent them to settle the score (new 1st level spell for wizard to learn) and an X-shaped bandolier for the Ranger to strap over his chest. At the center of the bandolier was a big, red button, that when punched would make sheets of spint mail bind themselves around the ranger's body, you know, like the batmobile, that way, armor was an immediate action away, but he could strut around the city being a renaissance paranormal private investigator without getting grief from johnny law. Every 3-4 levels he would find a new lever or gidget on the armor that provided a weird effect, like boot knives (level 3), a cacophonous alarm and +1 AC (level 6), mechanical strength bonus (level 9) etc. That way, the armor leveled up with him.

It made for neat imagery, he sees trouble down the street, strikes his chest as he runs towards it, with armor slinking around his form as he approaches whatever drama (usually a fight) is there.