[Scott Hebert]

I like the 'random item' idea, with one possible modification. If you can get Cursed/HorrorMarked/Cannot Be Removed Items, those items should go into the lab, not necessarily on the winner. If the item is placed on the winner, you should avoid all of the above items.

I would favor the first approach, and suggest to fix the Construction level at 4. This allows for some really good items without allowing the mind-shattering ones.

And a minor question. Is the Dwarven Hammer Const2 or Const4? I think it's listed in the MIQR as Const2, but I don't ever recall seeing it before Const 4.