I've got a couple questions about identifying magical items. In my interpretation Magical Engineering will identify common items such as most wands, items with a simple bonus (such as ring of protection +1, shield +2, etc.) but still suffers from the drawback of not being able to glean any additional knowledge of powers *or* if the item is cursed or not. So, I've decided that a Flametongue sword, for instance, cannot be IDed through Magical Engineering.
How does the identifying of such items work (outside the two weeks/1000 gp cost)? Does it require a sage or simply a high level magic-user? How many individuals should there be within a given market class to ID items? Should I be expanding my interpretation of Magical Engineering?
I've been using Magical Engineering in a fashion quite similar to the way you're describing, although I'm a bit more stingy: it doesn't really work for items enchanted beyond +1, as such treasures are generally unique, having their own histories and origins. For such enchanted items, or things like command words, exact properties, etc. I have gone with a mix of information gleaned from the item (e.g., command word engraved on it in a foreign tongue), and information found in history or myth. The research route is still perfectly possible, but this gives PCs a chance to find this information by being observant and interacing with the setting. It's also a way to provide additional value to Proficiencies like Knowledge or Craft.
Keep in mind that there are lots of items that can be identified by other means (i.e., Potions and Scrolls). I'll also generally supply bonuses of permanent items after PCs have used them for a while, as it would probably become apparent through use (e.g., it's Plate Mail +2 because it's near impenetrable and weighs only 4 stone) how potent something is and its effects. Obviously, this might take a long time for some items (e.g., Scarab of Protection) that only trigger under certain conditions, but is still relatively quick for run-of-the-mill items beyond +1 enchantment. It also has the advantage of quickly obviating the need for the Judge to secretly track an item's effects.