One of my players is making a Knight Of The Sidhe from a court that was forced to leave Ireland 1000 years ago by the Milesians, they have gone to the Otherworld (a section of Nevernever in Dresden terms.)  The Knight is being sent into this world to gather up the 4 treasures of the Tuatha Dé Danann so that the banished court may return in full power.  He has The Sword Of Light Of Nuada.
The four treasures are: The Dagda's Cauldron, The Spear of Lugh, The Stone of Fal, and The Sword of Light of Nuada.

This is from a quick skim of various web sites (last one rants a little):

Findias Uiscias or Uscias Sword (claideb) which belonged to Núadu No one ever escaped from it once it was drawn from its sheath, and no one could resist it.

To Nuada at his coronation was given a sword forged by the druid Uscias in the island of Findias. This sword, known as the Sword of Light, was irresistible to any man who laid eyes on it and promised death to every man who stood against it.

  "From the homeland, the people brought the Bright Sword. Its singular spirit cannot be escaped. O how wretched life increases when it (the sword) is unsheathed (or revealed).   In summation, the Bright Sword was a symbol rooted deeply in the history and consciousness of the Tuatha de Danann, long before their arrival on the Emerald Isle in the 13th century BC. It held the magical qualities of not only protection, but also was a symbol of illumination, wisdom, skill, creativity, speech and honor.         What then is the central theme of this Sacred Symbol? What one thing could possibly contain the various qualities of wisdom, illumination, skill, creativity, speech and honor? It is a simple answer really. It is nothing less and nothing more than TRUTH! What illuminates more brightly than TRUTH? What engenders wisdom more than TRUTH? What slays false speech more quickly and more thoroughly than TRUTH? What makes life more wretched for those who would avoid TRUTH? What is more honorable than TRUTH?

Using the Item Of Power idea, I was thinking that the sword, when drawn, would offer the wielder the choice of Alertness +4, or Presence +4, or Rapport +4, or Might +4.  Would that be a refresh of -2 for the +4 basic skill then another -1 because of the choices?  Should it cost 1 Fate point to activate, or would 1 Fate point give +2 and 2 Fate points give +4?  Oh, and do you think I have the basic idea of the sword, or would a different interpretation be better? 
Also, I wanted the sword to help locate the other treasures somehow, any ideas on that without making it too easy?

Sword Of Light:
Musts: You must be a Sidhe to wield the sword's powers, blessed by the King
Effects: When drawn, either Alertness +4, or Presence +4, or Rapport +4, or Might +4
Holy symbol against creatures of chaos
It's a sword
Unbreakable
Total refresh?

Given your heritage, how about a concept of I Vant Your Blood! Your blood has to be useful in making potions to control demons, or undead maybe.  Also, if you are captured and offered as a sacrifice to try to bargain with some major demonlords, either your father or another demonlord to give that demonlord power over your father.

Check up top at the Play By Post Child Boards, maybe one of those will work for you, and good luck.

p276 A ward is basically a very potent version of a block using thaumaturgy instead of evocation.

It must be late, but I was trying to figure out why a wizard would make a 8 shift ward when he could make a 24 or 40 shift ward instead?  Other than being game breaking with the PCs not being able to break through, am I missing some limiting factor?

I have read several posts about the pros and cons regarding tattoos and how to classify them.  I would like to pose an idea, and get feedback please.

I have an NPC that creates tattoos using a special ink while he makes them and hums a ritual song for focus and infusing small bits of power into the tattoo (i.e. thaumaturgy).
Suppose another tattooist with the same powers tattooed a yakuza style tattoo of a dragon that covered the first tattooist's back, part of both arms, and chest.  I believe that it would take at least a week to finish this process, assuming at least 4 hours each day.  Since I don't think a ritual can be stopped and started, suppose that on the last day only the ritual is done, with everything leading up to that last day being preparation.  I believe that would allow for enough shifts of power to allow the tattoo to remain active for a mortal lifetime.  Add 4 shifts for 2 conditions to activate the dragon tattoo; verbal phrase, or tattooist receives 4+ points of damage from a weapon (btw, is that too specific a condition?) 

I would like to think of the dragon as a conjuration formed from ectoplasm, lasting 15 minutes (is this too long?), and I think the dragon would be about the size of a large dog with wings.  Would the dragon tattoo be able to attack with claws and do harm?  Would it be able to breathe flame also, and again, do harm?  To recharge the dragon tattoo, the ritual on the last day would have to be redone with the incantation and special ink being applied at certain intervals, but not redo the entire drawing again.  Comments please.  P.S.  Is there a summoning spell somewhere to summon insects, bats, rats, cats, etc. to aid the spellcaster?

Concerning your final two questions:

-There is no way that I know of to make an enchanted item that absorbs a certain amount of damage. You can, however, make one that provides a block against attacks or physical armour.

I would very much like to see one that could block against attacks that can absorb a certain amount of damage, if that is possible.

-A fear spell could be handled as either a maneuver, a slightly altered grapple, or an attack on the mental stress track.

Most likely I would go with the mental stress track approach.  Strongly thinking of giving her the aspect Evil Eye based on her commanding presence and steely stare.

Your stats for Ms Mendoza need a fair bit of work if they are to fit into the rules. If you like, I can rewrite her. I would just rearrange the skills to fit into a pyramid, correct some typos, and create a section describing her magical abilities. If you would like me to do so, just give me an idea of what she is meant to be capable of.

That would be great!  She should be able to thaumatergically (if that's a word) use a spell to sacrifice someone so she can stay young.  She should also be able to make zombies, along with the head shrinking.  Ward spells would be great also.

As for a purpose, I would suggest "not dying". It's a sympathetic motivation that can lead to some very bad things. Plus, it explains why she does this ritual every month. If that seems like it wouldn't provide enough conflict with the players, than you can make the requirements for her survival escalate over time. Perhaps a demon lord has her over a barrel and will kill her unless she INSERT HORRIBLE ACTION HERE.

I like the idea of a small chance of sympathy from the players, so Not Dying sounds excellent, thanks very much.  Also, thanks to everyone that has posted, your feedback is all helping me understand the system better.

I will be running a live game soon, and want to make sure I have my first major NPC setup correctly.
Here's the plot background summary:
This is set in Tampa, Florida, the PCs are starting at Power Level Feet In The Water (6 refresh 20 skill points)
Female college student is kidnapped, her roommate contacts detective (PC), he will track down rumors leading to Ybor city district with 2 rival Latin/Cuban gangs.  Eventually he checks out an Ice Manufacturing Company, staffed by gang members.  Downstairs is a room with cupboards filled with red seeds, needles and thread, wooden balls covered in runes, “x” pins, herbs, salt, sand, ash, beads, countertops, medical surgery items, disposable gowns, masks, weird smells, gurney.  Hooks on cable from ceiling.  Large vat with liquid, one head held with net and weight floating in middle of vat bath, wooden ball (runes carved on surface of ball) already inside the head.  Head buried in sand in hot rock pit.  Erika is an Ecuadoran head shrinker that has learned to siphon off the life force via ritual sacrifice once a month at the new moon to maintain her youth.  She can also make zombies by attaching a head to a body that is kept preserved on ice.  Erika is the queen of one of the Latin/Cuban gangs.

Erika Mendoza aka Queen Melody (good singing voice while chanting rituals)
High Concept: Sorceress Head Shrinker
Aspect: Live Forever Young (must have new victim once a month to keep young)
Skills: (36 pts)
Alertness 2
Contacts 4
Conviction 4
Deceit 3
Discipline 4
Empathy 3
Intimidation 4
Lore 4
Presence 4
Resources 4
Stunts: (12 Refresh)
Wizard’s Constitution [-0]
Evocation [-3] p180
Thaumaturgy [-3] p181
Lawbreaker First [-2] p182
Lawbreaker Fifth [-2] p182
Refinement [-1] Thaum Control +2
Refinement [-1] Thaum Power +2
Focus Item Thaum Atheme  (offensive/defensive, more reading needed) p278 (combine 2)
Enchanted Item Shield Charm Armor 3 for 4 physical attacks (combined 2)
Focus Item Wand Evoc +1 Offensive Power
Physical OO
Mental OOOO

Will the Forever Young Spell require about 12 shifts to succeed, 3 to overcome physical resistance, 8 for severe consequence (death)?  The sacrifice will be bound, so no dodge or athletics roll will be possible. 

Do I have the correct levels for skills and items?  If the PCs ever confront her directly, Erika will have 2 bodyguards while she casts Evocation spells.  If a bodyguard falls, Erika would cast a Fear spell and leave quickly.  She is physically weak, hence the shield charm.  By the way, can you make a shield charm that has a total of 12 points of damage is can absorb before it stops working?

How would a Fear spell be created, to make the PCs possibly run away or cower, unable to attack?

I am also looking for more ideas as to what her purpose is, gain more power seems so mundane but is all I can think of at this time.

Thanks for all the help.