All good to hear.
Addressing E8,
yeah E8 lets magic items be toned down enough to balance a lot really quickly, and makes that random odd special material masterwork item (or alchemical oddity) that someone has held onto since the campaign started much more significant. And there's not really many warts on E8, there is the occasional feat that is just too good on its own but most stuff was fixed by (late) 3.5 errata.
The Realms,
just because they're from somewhere doesn't mean they're there now and
Lost my train of thought, can't.... brain good, without coffee. Gonna crack out the old FRCS tomorrow and go from there.
Other thing, I usually try to keep it rules light-ish and let the PCs RP out most things, which with 3.5 is either easily doable or a nightmare and FRCS doubles the available books. With 3.5 my standard is something like "allowed source books are PHB, DMG, Spell Compendium, Magic Item Compendium, (Rules Compendium if rules lawyers/munchkin present), + each player may (communally) add a book to this list from the Complete series" and end up with like 10 books max, but with The realms it explodes super wide open. I don't mind a like 12-15 sourcebook list, especially for realms, and usually look for player input completing the list.
You guys' half of the list would need to talk out amongst yourselves. (tome of magic, unearthed arcana*, PHB2, DMG2, Savage Species - are all NOs)
I'm thinking for DM's 'half': PHB, DMG, Spell Compendium, Magic Item Compendium, FRCS, Players guide to Faerun, and like one more i know i'm forgetting.
*=the only thing i never had a problem allowing was weapon group feats;
http://www.d20srd.org/srd/vari...weaponGroupFeats.htm