Hello Byron, Answers: 1. No upgrading. You have to buy a new magic item. It must be made magical when forged. 2. It would be considered a magic item for sure. The item's cost, though, would be x10 its usual price (as described in that section). 3. My view on counterspelling: while it seems like in theory it would make more sense to require an Arcana (or Religion) check to identify the incoming spell, and there are various ways to do that, I kind of feel that, in practice, it's just easier to let you know what I'm casting at you without a roll being needed. Besides, if you think about it, my bad guy casters will always know what you are casting at them because you have to declare it to me first, right? "Rob, I am casting fireball at the evil wizard." "Byron, he is going to counterspell that." "Crap!" So, it would seem only fair that, if my bad guys always auto-identify your spells, you should be able to auto-identify mine. "Byron, my evil wizard is casting a cone of cold at you." "Rob, I'm gonna use a higher level slot to counterspell that." "Gosh darn it, Byron!" What do you guys think? 4. I will not comment on that. If this were somehow possible, your character would have no idea about it. He would have to research such a topic and see what he finds out about it. (He would also need an in-game reason to even go looking for this possibility in the first place.) All Best, Rob