**SPOILER** The ring of regeneration came from the clerk at the adventure's shop. Always save before pickpocketing. Mostly I get gold/potins/gems/scrolls/minor wands(fear,MM,frost) when I pickpocket. It does add up though. Also for those playing an evil party and need to keep that Reputation in check. Getting caught pickpocketing from a small store you'll never go back into again is a nifty 2 point(always) drop. Killing people is so messy and the loss of rep. points varies depending on the victim.
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