Talismans is a plugin that adds craftable items that give players passive buffs while they are in the player's inventory. Crafting recipes, textures, power, names, descriptions - anything that you'd want to configure, you can.
How do I install it?
It's just as straightfoward as any other plugin. Just drop the jar into your plugins folder and restart the server. Talismans is built to support plugin management plugins such as PlugMan and ServerUtils, so don't worry about it breaking.