<<
When it comes to derivative works, what is the intention on magic items?
Can a work list a magic item from the DMG as treasure within an
adventure that is being published as D20 compatible without infringing
on the copyright of the DMG?  I have heard that mentioning a spell is
okay as long as no description of the spell is given, but what is the
legal word on magic items?
>>

Once the D20SRD is released, we'll know more on what you can provide in
your works that derive off the core books.

Likely, a number of magical items (those not original creations of
TSR/WotC) will be in the d20SRD, and others will probably have
genericized names, or otherwise be specified as Product Identity.  You
won't be able to actually use the PI names without the permission of
WotC, but you could take your own archlich/demigod and rename the Hand
and Eye of Vecna to the Hand and Eye of <insert name of
archlich/demigod>.

Basically you're free to use as much from the D20SRD (except PI), as you
want.

-- 
Korath,
http://www.korath.com
"He was already dead, he died a year ago, the moment he touched her.
They're all dead, they just don't know it." --Eric Draven, The Crow

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