Re: Curse~Lose an item!
Q1: No. He must choose the Staff. If the Atlantean Sword were the only Item he had, he could keep it.
Q2: No. That ability is in effect whether the Sword is equipped or not. It cannot be lost to Curses, so he would still lose the Staff.
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My unofficial, but comprehensive Flowcharts: Munchkin: A4 Letter; Munchkin Quest: A4 Letter
Rules Checklist for all Munchkin sets: A4 Letter.
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