Here's my 2 cents worth. I bought a smugglers edge and wanted to put it on my garg theif. Well, at that time, I didn't read the info well and didn't realize I could use a tinkerer to convert it to a garg item. But, my garg theif didn't have any weapon skil, anyway. So, I transfered my 119.3 stealing to my miner who already had around 60 swords skill. I have tried to steal from higher end monsters, etc, but didn't get much and got kicked around a lot. I use a bloodwood darkwood suit so it will heal me, as well. My favorite stealing place for the loctions, balms, etc, was always the shadow wisps, so I went there. Yes, you hold the edge in your hand and try to kill them. Since I'm very successfull in stealing, it's good to use something I can kill easily so I don't have to keep seeing the message," This creature has already been stollen from." My swords skill has gone up to just under gm, now, but no stealing gains at all. I get around 1 of the special items (lantern/tinkers) about every 45 min or real time. I've been trying to keep track of how much time between. Sometimes I'll get one about 30 min into it and another in around 15 min, but it might be an hour or more of real play till I get another one.
I love it. I think it's worth the rl money because I get bored easily and this is new. I've learned not to repair it till the durability gets down close to 0 because even with a gm tink with gm lore, it still looses one durability when repaired. You don't try to steal, you just try to kill them. It's really not hard, and somewhat fun, but sometimes a lot frustrating.
That's how I do it. Hope I've helped someone.