Currently the Banned items/mods for Magic World 2 are:

Full Mods:
MystCraft - Server Lag issues.
Dye Trees - Creates spreading corruption zones that crashes any player caught inside.

Single Items:
Scroll of uncovering - Arcane Scrolls - Deletes any armor on a person that this is used on.
Block Replacer - Random Things - Duplication Bug.
Magnetic Force - Random Things - Allows for Teleportation to anyone without permission, Similar to /tp command.
Beheader - Player Beacons - Crash bug with heads created
Axe of the Skulltaker - Forbidden Magic - Crash bug with heads created
Dig Spell - Ars Magic 2 - Towny Bypass
Arcane Bore Base - Thaumcraft - Towny Bypass
Tome of Alkahest - Xeno's Reliquary - Disabled by mod author
Sponge Wipe - Flat Signs - Towny Bypass
Wand Focus: Equal Trade - Thaumcraft - Towny Bypass
Bound Tools - Blood Magic - Towny Bypass, does not include Bound Blade
Charm of keeping - Twilight Forest - Destruction of items on death

If you think something should be added or give a good reason why an item or mod should be removed use the Contact Us tab to send a message to staff, or use PMs to message staff or owners regarding the bug.