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LotR War in the North: Best Items

Provided the desired legendary elfstones are available (obtainable via Drop Any Item), a build consisting of two-slotted items always provides the best end-game performance for any character. As such, the best items are always those with the most elfstone slots.

Further, armor rating, durability, damage, and dexterity are not important when considering the best item in any category. Once per difficulty level, repeatable indefinitely on Legendary, a single item can be enhanced with mithril via the associated quest obtained from Arwen in Rivendell. On Legendary difficulty, mithril will add the following bonuses, stacking up to 6 times for doubly-slotted items (8 for items with no slots):

Per Item Bonus Max Bonus (if 2 Slots)
Weapons +5000% Reduced Wear
+120 Damage
+300 Crit Damage
+30000% Reduced Wear
+720 Damage
+1800 Crit Damage
Armor & Jewelry +5000% Reduced Wear
+150 Armor
+30 Dexterity
+30000% Reduced Wear
+900 Armor
+180 Dexterity

If enough mithril is applied, the starting game equipment can attain a similar, or even superior, effective armor rating or damage range as that of any unmodified end-game gear. The game must be completed between 10-12 times to apply mithril once to each equipment slot, and between 60-72 times on Legendary to obtain the maximum bonus for all items.

With all this in mind, the best items in each equipment category are as follows:

Item Slots Notes
Amulets am_135: Silvan Amulet 2 Power Orb +10%, equivalent to an extra elfstone slot.
Axes & Blunt Weaponry, One-Handed w1_075: Angmir's War-hammer (Blunt) 2 The only blunt of this type with two slots and a non-trivial effect (health regen).
w1_139: Adalgar's Prize (Axe) 2 Weapon skills cause Slow 100%, equivalent to an extra elfstone slot.
w1_174: Anor Prince's Hammer (Blunt) 1 1.5x Damage vs. Orc, equivalent to an extra elfstone slot. Deals ice damage equivalent to a Glowing elfstone.
w1_334: Redhorn Gate Mace (Blunt) 1 Weapon skills cause Stun 100%, equivalent to an extra elfstone slot. Deals shock damage equivalent to a Shining elfstone.
w1_397: Moria-silver Hammer (Blunt) 1 Weapon skills cause Stun 100%, equivalent to an extra elfstone slot. High base damage reduces mithril farming, but other blunt weapons outclass it in useful effects and/or slots.
Axes & Blunt Weaponry, Two-Handed w2_093: Buri's Battle-Axe (Axe) 3 Only triple-slotted item in the game.
w2_311: Chamberlain's Great Hammer (Blunt) 2 1.5x Damage vs. Troll, almost equivalent to an extra elfstone slot.
w2_331: Ernil Battle-Axe (Axe) 2 Weapon skills cause Slow 100%, equivalent to an extra elfstone slot. Deals fire damage equivalent to a Shining elfstone.
w2_346: Durin's Folk Broad Axe (Axe) 1 Chance of Health Orb +19%, almost equivalent to two elfstone slots.
w2_380: Ironwill Great Hammer (Blunt) 2 Deals shock damage equivalent to a Shining elfstone.
Body Armors c_022: Mithlond Chestpiece 2 Lore-master only. Only double-slotted chest armor with effects.
c_300: Hardened Bramblethorn Armor 2 No effects.
c_363: Galron's Woven Armor 1 Enemy Miss Chance +10%, equivalent to an extra elfstone slot.
Boots b_224: Forest Gate Greaves 2 Part of set Marksman.
b_274: Commander's Greaves 2 Ranger only. Part of set Stalker.
b_372: Lebennin Greaves 2 No effects.
Bows bw_336: Celebdil Bow 2 1.5x Damage vs. Spider, equivalent to an extra elfstone slot.
bw_363: Galron's Yew Bow 0 Steal Power Chance 19% and +2 Improved Aiming, equivalent to four extra elfstone slots.
bw_395: Peredhil Bow 1 1.5x Damage vs. Undead, equivalent to an extra elfstone slot.
Crossbows xb_179: Eryn Celeb Arbalest 1 1.5x Damage vs. Undead and Chance of Power Orb +12%, equivalent to two extra elfstone slots.
xb_322: Ered Nimrais Crossbow 2 No effects.
xb_378: Stone-guardian Light Crossbow 0 1.5x Damage vs. Orc and 1.5x Damage vs. Troll, equivalent to two extra elfstone slots.
Gloves g_240: Eotheod Lord's Hand Guards 2 Reduced Damage +6, equivalent to a Shining elfstone. Part of set Bright-flame.
Headpieces h_148: Deep-vein Helm 2 Requires one extra mithril run to match the Hidden-lake Helmet; only effect (+4 Will) may not be worth the time.
h_219: Hidden-lake Helmet 2 No effects.
Leggings l_331: Ernil Leg Armor 2 -
Rings r_075: Imladris Signet 2 Only double-slotted ring in the game. Can only be obtained twice in the regular game: as quest reward from Elrond on Easy and Normal difficulties.
Shields sh_311: Chamberlain's Great Shield 2 No effects.
Shoulders s_321: Nightshade Shoulders 2 +12 Reflect Damage, equivalent to a Shining elfstone.
Staves st_113: Path-finder's Battle-stave 2 Weapon skills cause Stun 100%, equivalent to an extra elfstone slot.
st_183: Egladil Battle Staff 2 Chance of Health Orb +12%, equivalent to an extra elfstone slot.
st_187: Lone-lands Staff 2 1.5x Damage vs. Troll, equivalent to an extra elfstone slot. Deals ice damage equivalent to a Glowing elfstone.
st_240: First-born Staff 2 1.5x Damage vs. Spider, equivalent to an extra elfstone slot.
st_327: Troll-bane Staff 2 Deals fire damage equivalent to a Shining elfstone.
st_363: Forest-lord's Staff 2 1.5x Damage vs. Orc, equivalent to an extra elfstone slot.
st_389: Doriath Battle-stave 2 Deals shock damage equivalent to a Shining elfstone.
st_397: Peredhil Battle Staff 2 Highest base damage of all staves, while providing stamina equivalent to a Glowing elfstone.
Swords, One-Handed s1_051: Bundushathur Broadsword 2 Weapon skills cause Stun 100%, equivalent to an extra elfstone slot.
s1_344: Ember 1 1.5x Damage vs. Undead, equivalent to an extra elfstone slot. Deals fire damage equivalent to a Shining elfstone.
s1_392: Nargothrond Blade 2 Highest base damage of all one-handed swords.
Swords, Two-Handed s2_114: Defender's War Sword 2 Chance of Power Orb +10%, equivalent to an extra elfstone slot.
s2_327: Troll-bane Two-Handed Sword 2 1.5x Damage vs. Troll, equivalent to an extra elfstone slot.
s2_346: Cair Andros Two-Handed Sword 2 +16% Power Regen, almost equivalent to an extra elfstone slot.
s2_396: Peredhil Great Sword 1 1.5x Damage vs. Undead, equivalent to an extra elfstone slot. Deals shock damage equivalent to a Shining elfstone.

The best effects, whether applied by an elfstone or inherent to the item, are as follows:

Explanation
Skill Cooldown Reduction X% With between 2-3 elfstones of this type, the Ranger (Eradan) can remain permanently in stealth mode, essentially making him immune to targeted attacks. All character classes benefit greatly from being able to cast skills in rapid succession.
Steal Health Chance X% Heals the player upon damaging opponents. Enables long runs of critical strikes without the need to use potions. This effect is far more useful than its relative (Health Orb), as the latter requires you to defeat an enemy before receiving health.
Steal Power Chance X% Restores power to the player upon damaging opponents. Enables long runs of skill attacks without the need to use potions.
Chance of Power Orb +X% Generates orbs that restore the player's power upon slaying opponents. Provides near-infinite power for skill attacks used against weaker enemies, such as goblins.
+X Ice Damage Arguably the best of the damaging elfstones. Regardless of the effect's damage value, all skill attacks may freeze opponents, preventing them from attacking while making them more vulnerable. If frozen mid-animation, enemies will resume the same animation after thawing out. The player can exploit this behavior to reposition against heavy-hitters, or to lure other foes into friendly-fire.
Weapon skills cause Stun 100% Similar to ice damage, but foes will not be committed to their previous animation after the stun effect elapses, making this marginally less useful.
+X Deep Wounds Damage Provides a damage-over-time effect similar to fire, but usually with greater magnitude and duration.
Reduced Damage +X Combined with high armor, makes your character almost invulnerable. This effect provides a flat reduction to the number you see after armor has been applied. A sum value of Reduced Damage +50 can wholly eliminate the damage from most attacks, provided your armor is high enough. Note that on Legendary difficulty, some attacks always one-shot your character e.g. goblin sappers; you cannot mitigate these.

As an honorary mention to the above, all X Damage vs. Y effects cause the associated weapon to glow blue whenever that enemy type is present. Not essential, but it provides a cool visual effect.