If your talking about like a Dragon or a Lamia or a Black Sorcerer, then IIRC the item is dropped and if you win the battle you can recover some of the items which you have a better chance with more commanders but sometimes you lose items no matter what.

Edit: Oh and no, they don't affect someone/thing that is shapechanged. So if you have a shapechanger don't put on non-cross-slotable items if you anticipate them changing forms.

[ January 31, 2004, 17:03: Message edited by: Zen ]