Alessar: Here's a tip for anyone new to the game or who may have forgotten about it. There's a program called itemmake.exe in the MOM directory. It's a utility that lets you edit the stock magic items that can be found in the game. You can replace some of the junkier items with cool, overpowered artifacts of your own design. The effects of the editor permanently saves to the game though, so be sure you want to do this.
To get itemmake.exe to run you have to use dosbox also. I did this by copying the files that run MoM itself and updating them.
-First I went into the MoM folder and found the file "dosboxMOM.conf" and copied it. (copy, then paste in place making dosboxmom.conf-copy)
-I renamed the copy "dosboxITM.conf".
-Then I opened doxboxITM.conf in notepad and scrolled to the bottom. I changed the 2nd from last line from "magic.exe" to "itemmake.exe" and saved it. Make sure it doesn't save with .txt tacked on at the end!
(If you have Vista/7 you may hit a snag with permissions, in which case either give yourself write permission or just save the conf file to the desktop and then move it and tell UAC to let the move happen when it prompts you for permission.)
-I then copied the desktop icon for Master of Magic and renamed it to MoM Item Editor
-Right-click on the Item Editor shortcut icon and select Properties; in the Target line change the bit that says dosboxMOM.conf to dosboxITM.conf and click OK.

Again, the item make program changes the actual game files. I don't know which file it writes the changes into so be prepared to reinstall if you goof something up.
The interface in item maker is very simple. The top left icon is the picture the game uses, with arrows that let you cycle through skins. If you use the left arrow first thing you'll glitch your item and start looking at the wrong skins. Once you go to the right at least once you can then use the left arrow safely to browse all the skins for the category. The second pair of arrows will be surrounding a label like "Item #1" and those are the arrows that let you cycle through the game's 255 items. In the top right there are 10 category buttons for things like sword, shield, staff, misc. You can completely throw out a +1 mace and replace it with a Staff of 4xHoly Word with +20 Casting Skill. The area below contains innate weapon/defense properties on the left and special magical powers on the right. You can only have 4 special properties in the editor. (Tip: don't edit Axe of the Caster, you can't actually make that item with the editor). Just keep scrolling through items to make changes. When you actually click OK, the changes are saved and you exit.
The way the developers have set up the master list seems to be that at first lower powered magic items from each category appear. That takes up about 100 or so of the items. Often these will have lower bonuses and only a 1-2 properties. Then the categories start over and the items have more powers and more combo effects. Finally the last chunk of the list will be the items with 4 powers and fairly high power ratings, and some of the more "artifact" like names.

carlosjuero: Nice catch!
Another, slightly easier, way to go about having multiple 'shortcuts' for the game, editor, and whatnot is to use a front-end for DOSBOX. I use D-Fend Reloaded, it comes with its own copy of DOSBOX and makes it easy to configure DOS games/utilities/etc. W/ DFR it is as easy as creating 2 separate entries - and it will work 100% w/ GoG games.

zxc789: There is one thing to note about the Itemmake, is that the game rates the magical items based on how powerful they are. Based on the item's power that decides how powerful are the monsters guarding it. Make an overpowered item, and you can expect some hefty resistance to acquiring it.

kalirion: Ah, but who wouldn't enjoy facing a Sorcery node with 6 Sky Drakes and 3 Djinn?