Potions are one-time use items that you may craft and sell to Heroes. Typically they are used once by the Hero on a journey to save his life or improve the entire trek. A Hero may only carry one potion at a time. +Bonuses improve the effect of the potion's power linearly.
Power: Effect: Duration
Light: Chance to find extra treasure: Once
Fire: Weak Bonus to Attack: Once
Frost: Medium Bonus to Attack: Once
Thunder: Strong Bonus to Attack: Once
Shadow: Weak Bonus to Defense: Journey
Haste: Increases speed of trek: Journey
Lucky: Chance to find lotsa treasure: Once
Reflect: Medium Bonus to Defense: Journey
Vampir: Increases experience of trek: Journey
Holy: Strong Bonus to Defense: Journey
Special abilities on non-potions only differ in one regard...and that is they are more powerful or weak in certain locations. For example, a Frost Sword +10 at Mt. Snow is going to cause more harm than good for the adventurer. Otherwise, they add survivability equal to the counterpart +X Bonus across the table.
Here are the list of locations a Hero can travel to, the appropriate levels they travel there, and some item effects due to equipment.
1 to 4 = Shadow Caves (Light+, Shadow-)
5 to 8 = Snow Mtns. (Fire+, Frost-)
9 to 12 = Misty Wood (Lucky+, Thunder-)
13 to 16 = Burial Ground (Holy+, Vampir-)
17 to 19 = Dragon Dungeon (?, ?)
20 = Dragon's Lair (?, ?)