You are right about the items in George's shop (I just checked, to see if I was imagining things, or not <img src="/ubbthreads/images/graemlins/winkwink.gif" alt="" /> ). I did save the shield to use later in my first game, but apparently that was for the better armour class, not any bonuses. By the time I was strong enough to use the swords I had found better ones. As an archer on hard, I started using that bow as soon as I got my stats up, though.
For level 1, +16 vitality was great on the leggings I got.
Oh well, I guess this doesn't count as one of the more significant differences between normal and hard. <img src="/ubbthreads/images/graemlins/biggrin.gif" alt="" />