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Originally Posted by MasterNuke
If you create a falchion of Poisoning (looks like a greenish vanadium blade) and wipe it with cancellation... it turns into a sabre when weilded... the kind of crude looking gray weapon.
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Alchemy items are "enchanted". If you cast cancellation on an alchemy item it gets rid of the enchantment, thus making it a useless, normal, weapon.