For the others of you who are voting 5's and not commenting, shame on you. If it's that good, you should leave a comment, even just "Wow".
Seriously though, this is a great item with a great story. It's almost too much story. Almost. I almost voted 4 because the sword is more like a plot device than a weapon, just something to move the story along than an item with it's own worth, but it's a really good story.
A bit munchkin. A vampire with one of these looses any villian background and becomes a superpowered junkie. Pouring out lava, acid, or molten gold is way too powerful. Imagine a never ending canteen of spider poision. Yikes!
If it was limited to potable fluids, juices, wines, milk and of course, water, it would be less over powerful.
You could balance it by letting each user only have access to a limited portion each day. Say about 3 gallons of whatever's inside. It's still never ending, because you can pour out more tomorrow, and you'll have enough to survive if it's water, but it won't be an instant artificial volcano.
Brace canteen in place, top down, un cork, vacate premisies. Go to Comment
This is another take on the Wand of Wonder, as mentioned but with the nice backstory, I would use this rather than the regular wand. Sometimes a new take yeilds new ideas, like The Deck of Fate, but this one is the same as any other.
When the characters approach a clearing in the forest, they will see 4 ogres who are guarding, and preventing from escape, 4 human males, and 3 human females. The ogres will see the party and leap to attack. The females will scream "OUR SAVIORS!!" and run screaming straight across the currently forming battlefield, in between ogres and party members, to hide behind the rearmost party members. They will be safe there. The males will try to skirt the battle to the north side to join the women.
To the south, giants will be hiding in the thick underbrush until the party has engaged the ogres and then attack the most opportune target EXCEPT the ones that the females are next to.
It should be noted that the female commoners are not female commoners at all, nor are the male commoners actually male commoners. The female commoners are the hags, who have polymorphed themselves as the commoners in their stewpot to escape detection. The males skirting the battle are actually MORE ogres, the hags were in the process of polymorphing ALL the ogres into regular humans for ambush purposes. The REAL commoners are already dead, having found their way into the coven's cauldron for dinner.
The hags (the women) will position themselves near to any spellcasters in the rear first, and then near anyone else in the back of the fight. The ogres (the men) will wait until the hags shift form, and then attack first the rear folks, then shift into the melee.
It is possible that the characters, as they approach the ogres, will notice the giants in the bush, and be able to warn the others of the ambush.
GAME NOTES: If you sell the screaming women correctly, they will not even be suspected until it is too late. Therein lay the problem. This encounter is ESPECIALLY deadly to the rear eschelon of the party. It is entirely possible that the hags will finish off half the party before they even realize they have been duped. Caution is required if the game master wishes to avoid a TPK(total party kill).