Here's a copy from my current document of houserules. I don't claim authorship to all of this, in fact I liberally borrowed from many of you! Most nominally, JCHendee's stacked armour system, very elegant. A few of these arn't so much houserules, but clarifications of stuff that invariably comes up, such as space vs. card enemies, and a couple of these I've mentioned in other topics, like our scalable trophy rule.

Talisman Houserules

Startup

Players randomly pick 3 characters and then choose between them.

Inheritance

If a player is killed they can pick another character using the random 3 character pick method ( or however all players agree )

The player then gets a +1 on strength and craft *if* it's not a suicide attempt, ie: death by Sentinel. This would be agreed upon by the other characters. If a player dies a second time they get a +2 advantage, this repeats up until +3.

The dead character’s favourite Follower and Object are inherited by the new character, everything else is left on the space the character died.

Movement

Refer to Movement chart for Character, Object, Follower & Spell combinations.

On a player's starting location they can roll to get a blessing
1-4 ignored, 5: 1 gold, 6: 1 fate

Combat

Trophies can only be accumulated by cards, not encounters from spaces on the board, ie: the Tavern, Sentinel, or Werewolf and also not from random encounters on place cards such as the Dragon in the Cave. This also applies to the Runesword, or any other weapon that benefits from a loss of life.

If armour or any other method for the prevention of loss of life is used then the owner of the Runesword does not get a life.

During any combat if someone rolls a 1 and the other person rolls a 6 then the 6 automatically wins. This is considered a critical hit, and even if there would be no chance of one of the combatants winning they still win. This applies to both CvC and CvM attacks.

Armour

You can have multiple pieces of armour and roll against each one, rolling from best to worst protection. You can only have one type of each armour eg: you can only have one helmet at a time.

Trophies

When counting Trophies to go up a level you don't cash in every 7.
Instead, you need the level you are currently at +1, or you can consider it to be the next level. The advantages to this are it's quicker to level up with lower level characters and slower to level up with higher. The drawback is you have to recount each time you want to cash in. Count any objects or Followers that add to your Strength and Craft values, but not anything that you add just for combat.

You can save your trophies and go up two levels, but take into account the accumulative amount that would add up to. ie: A 6th level character holds onto enough Trophies so they can go up to level 8. They would need 7 points to go up to level 7 and 8 to go up to level 8, needing 15 points altogether to go up to level 8.

If you lose any Magical Objects that gave you a point bonus that meant going up a level, you don't go down any levels. Consider you still have the residual magic around you from possessing it.

Followers

Enemy and Animal Followers cannot be mesmerized unless the person who casts the spell is able to actually take them as Followers.
If a resurrected Enemy is discarded/lost it reverts to being an Enemy as it has already been resurrected and is no longer "dead".
You can lose them as "normal" Followers. To all intents and purposes they are Followers.

Warlock’s Quests

Characters begin with one random quest.

Quests are considered Warlock spells and must be carried out as soon as possible; if you have the choice between finishing a quest and a different action you have to finish the quest. The exception would be if there is no possiblity in even attempting, if you stand a chance then you must take it.

You can pick up new quests whenever appropriate ( the Cave, pool, etc ) and then finish them in whatever order. As long as you fufill the quest as soon as possible it doesn’t matter what order.

After finishing a quest you are teleported to the Cave and receive a Talisman. If there are no Talismans in the deck left then you get nothing for your first quest.

On your second and subsequent quest(s) s you can pick from the Dungeon Treasure card deck.

If you are playing the Warlock alternative ending then you don’t get Dungeon Treasure cards for finishing quests.

If you die then your Quests go to the discard pile, your next character does not inherit them.

Pit Fiends

Roll 3d6 and if your Strength is higher then the 1d6 amount of Pit Fiends ( Strength 4 ) is a stacked monster attack