I've come across some enchanted items, but it just says that the effect is unknown. Do I need to identify these in some way?

The Mages Guild offers a service to identify items.

Edit: you don't _need_ to identify most items, as it will usually be obvious from using it what the effect is. But it makes it easier to find what you want if you have a lot of enchanted items.

Ah, I figured it would be something like that. Thanks. Do you need to be a member to use any guild service?

This is my first time really getting into Daggerfall; past experiences didn't get me much farther than Privateer's Hold. But I'm totally loving this. Well, apart from https://dl.dropbox.com/u/12156788/why.jpg.

Non-members can use several services from the different guilds. You don't need to join the MG to use the identify service.