This thread has gone on too long for me not to react on it, so here it comes:
First of all, I second the general opinion that Arilistan's loot is far too much and too good. The items themselves are already a bit over the top, but the sheer amount of them is, well, not quit right. I mean, like 4 amulets of power? 6 or so of that special +2 katana? Perhaps creating a few unique items or so would improve the balance a bit, and not dropping half a dozen of them will undoubtebly help as well.
As for the downtuning of Peanelian, I can't really say much. I didn't use her all that much (like once to try out what she was about) in the original mod, and probably won't in the update. Basically, I don't allow whatever enemies I'm fighting to cast Timestop anyway... Apart from that though, if her resistances are as high as CamDawg is saying, well, that's perhaps a tiny bit too much, isn't it?
As for Tashia's own items and resistances, I say do away with the innate resistances, cause they are a bit high. About her items though, I have my doubts...
Edwin and Nalia both come without bracers, and Jan is the only NPC I can remember that comes equipped with more than two magic items (armor, gloves, crossbow).
True enough, but apart from the fact that Jan's crossbow (or at least the bolts) are quite good (in Tactics they're lifesavers, I tell you), Nalia's wearing quite a powerful ring (+2 to
AC, +2 to saves, 50% Fire resistance). And Edwin's amulet? +2 Spells/Spell level is extremely powerful, much better then any amulet in the game for a pure mage. True, the two latter ones can't be removed, but who cares? There isn't any better material out there...
So I'd say, do away with some of the items, but perhaps give Tashia some kind of unique item as well. What disturbed me most about the items, was not that they were too powerful or that there were too many of them, but that there weren't any new things among them... (Yes, I know, making new items is extra work as well; but it's worth a shot, no?).