Ok, here is what will be for sale after the Interlude (Act 1 items):
Currently you have 250g. I'm going to boost that to 450g because you guys are struggling more than you should be at this stage and it's only going to get worse with the Act 2 monsters getting a power boost.
So, my advice to you is that you all need an Act 2 weapon ASAP... I would not waste money kitting out on Act 1 weapons except perhaps for the Crossbow. I was honestly a bit surprised when you passed over the Crossbow earlier, the ability to move monsters on a surge is extremely powerful.
So for the Act 1 stuff, my advice is to look at support items that will be good in the long run. You've already got the two best Armour items (Chainmail and Leather), so I think you should look hard at the Mana Weave and Ring of Power. I don't think you guys need the Lucky Charm personally, but you may feel differently *shrug*
In terms of equipment generally, you guys seem very focussed on your starting equipment. Challara needs a Rune to use her skills (although she can take a skill that lets her turn other weapons into Runes) and Tetherys needs a Bow. But Steelhorns really doesn't need a "sword", he could have taken the Light Hammer currently used by Okaluk, and you would have had two Melee characters dealing out stuns and reasonable damage.
Okaluk could be using the Spear right now, which with Reach would have helped him keep out of danger thanks to not needing to be right next to a Monster to attack (and worked around skills like Freezing or Aura where there is a penalty for going adjacent to a monster).
Actually I would be tempted to give Okaluk the Crossbow and keep him further out of danger. Give him the Leather Armour which boosts his Health, and give the Chainmail to Steelhorns. Steelhorns takes the Light Hammer (for now) and the Ring of Power for an extra Stamina, and he should take Guard as his next skill. This will turn him into a Damage Soak, often forcing me to attack him rather than the weaker heroes.
Out of the Act 2 Gear, these would be my picks:
Challara - Demonhide Leather and Ice Storm. No brainers really.
Tetherys - Also no brainers, Latari Longbow and Elven Cloak.
Steelhorns - Not sure on a weapon for Steel, but out of those options probably the Mace of Kellos for the free heals. We will probably do a mission in Act 2 for "The Dawnblade" which I'm sure Steelhorns would like. Platemail for Steelhorns, passing the Chainmail back to Okaluk
Okaluk - I'd go the Firebomb, and the Chainmail from Steelhorns when he upgrades.
Optional Extras: Iron Bound Ring for Okaluk, Heavy Steel Shield for Steelhorns (passing current shield to Okaluk), Tival Crystal for someone would also be nice, but not essential.
I don't remember seeing the Crossbow. Maybe it was early on when we didn't have much money. I'd also read that it was best to not spend too much money on Act 1 equipment.
Ok so Boggy wants the Mana weave, anyone else getting something? Remember, the act 1 stuff goes back in the box after this, speak now or lose it forever!
Yeah it would definately be of use for me but i have already taken 3 items so i felt bad suggesting it
Unsure if it has been covered already but does the gold from searches, etc increase as well (in line with the items) or are we only looking at the same small amounts each search?
Reminder, you have 100 gold to spend currently. Starting gear can be sold for 25g, anything else is sold for half it's value rounded down to the nearest 25g (eg 75g becomes 25g not 50g).
I am also happy for you guys to "buy back" Steelhorn's old sword for 25g.