I know it is probably written somewhere as well so if you can kindly point me to that area as well that would be great - I just keep missing it as I skim over the documents.
Thanks.
"Reference" would be where you'd indicate where the item information is found (Adventurer's Vault, with a page number, Dragon Magazine, with an issue number and page number, etc.).
So the player gets only 5 magic items for Heroic level correct? Is this spot used to record the players magic items or is it for something else?
You can only have 1 found magic item (item from an adventure that you get for free) per character level. Once you find a magic item in this way, you have used up that 'found magic item' slot and can never replace it with anything--even if you sell or lose the found magic item. Thus you can only ever have 30 found magic items (and then, only if you make it to level 30).
So the player gets only 5 magic items for Heroic level correct? Is this spot used to record the players magic items or is it for something else?
No, that's not really it.
Magic items fall into three categories:
1) "Found" items...these are the items that you get in "treasure bundles" during adventures. You may only take as many "found items" as you have levels...and, even if you sell one of your found items later, that sold item still counts against your limit of one found item per level. You record these under the "Found Magic Item" entry on your Adventure Log.
2) Purchased "open" items. You are free to buy magic items from open sources (primarily the magic item lists in the PHB) as long as you (a) have enough GP, and (b) are of the same level as the item (or higher). Thus, if you want a suit of Eladrin Armor +1 (a level 3 item, costing 680gp), you can simply buy it once you're at least 3rd level, and have 680gp to spend. You should record these purchases under the "Notes" section on your Adventure Log.
3) Item Access items. For each of the three tiers, you can select 5 magic items that are not normally open access (such as magic items from Adventurer's Vault or Dragon Magazine) and use the "Item Access" slots to open up access to those items for you. You list the items you want to open access to on your Advancement Tracker sheet. Once you qualify to buy one of those items (by the same rules as "open" items -- you have to be high enough level for the item, and have enough gold), you may purchase it with your GP. And, as with open items, you should record that purchase under the "Notes" section of your Adventure Log.
For example, you might want the "Symbol of Good Fortune +1" magic holy symbol from Adventurer's Vault. That's a Level 2 item, costing 520 gp. At some point before you buy it, list it on your Advancement Tracker as one of the items to which you want to open access (as one of the 5 Heroic-tier items you may open access to). Then, you can buy it at any point thereafter, the same way you'd buy an Open access item.
Note that you don't need to fill out your Item Access list immediately; you only need to put an item on the list once you know what you want. (And, as new items are published, such as in new issues of Dragon, the list of items that you can use the Item Access list for will continue to grow, so you probably *don't* want to fill all 15 items on that list right away.)
Does that make it clearer?
I just wanna make sure I got this straight.
So from lvls 1-30 players can take 30 magic items provided as rewards from the adventures. period.
They ALSO can purchase magic items once they reach the lvl requirement and gold requirement from the PHB.
AND they ALSO can purchase 15 magic items from outside the PHB assuming they have the correct lvl and gold at that given time for the magic item.
Is that correct?
...Does that make it clearer?
Yes, is much clearer now.
I just wanna make sure I got this straight.
So from lvls 1-30 players can take 30 magic items provided as rewards from the adventures. period.
They ALSO can purchase magic items once they reach the lvl requirement and gold requirement from the PHB.
AND they ALSO can purchase 15 magic items from outside the PHB assuming they have the correct lvl and gold at that given time for the magic item.
Is that correct?
By Jove, I think you've got it!
Ok, enough of the rant and on to the question. I played at Gen Con in a couple of LFR adventures. Each adventure had a treasure bundle with a magic item in it (amulet of health +1 and bracers of the perfect shot, respectively), which I recorded on my found item slot on my Adventure Log. Since I didn't accumulate enough XP to reach second level in these adventures, does that mean that I only have access to one of those magic items? Do I lose the item that I earned in the second adventure or can I hold onto it until I reach level two? Help please. My brain hurts.
Each found item fills a slot, permanently. If you have no slots (i.e. you have found a number of items equal to your current level) you cannot 'find' an item at the end of any adventures until you gain a new level. If you have a slot free, you can choose an item at the end of an adventure.
Note that rituals, ritual scrolls, and potions do not take up found-item slots.
On your specific question, you were not able to choose an item from your second adventure, if you chose one (it sounds like you chose the amulet of health +1) from your first. Cross it off as you never had it. You can probably swap it for an extra 50gp without breaking anything - the online tracker will be wrong, but that can be fixed.
The access list is separate from that: it allows you to gain access to five items per tier from outside the PH. You can only buy (as opposed to find) items once you have reached the level of the item. If you want a magic item or ritual from AV or Dragon, for instance, put it on your access list and then once you are high enough level and have enough gp, you can buy it.
Hope that helps.