[@Dark Cloud] nope, doesn't have to! Any of your items can give you a defense against a certain situation, doesn't need to be your best item that does it. You could conceivably have a feather that gave you defense in tickle wars, or something. 

For the high quality slot, it can be a tier 1 concoction (a potion with a positive and questionable aspect, like Suregrip: allows you to climb surfaces but items stick to you) tier 1 contraption (like an invention, powder or bomb, again with a positive aspect and a questionable aspect) or a tier 1 magic item (same again, and has limited uses, so think a cloak of invisibility except it only turns you invisible if you're buck naked with the cloak on) or you can take 1 gold, which would allow you to recruit the first minions you find. 

Also rip, seems like the PDF is a problem so I'll zip it.