I'm looking for a tutorial
I'm trying to figure out how to accomplish the "physics" effect found on certain items, for e.g Dazzles rings on his staff, how they move around on there own as a reaction to the staff moving. I want to create a staff with long feathers that move as if it would in real life. I have downloaded and imported Dazzles staff to take a peek if there was anything I could have figured out for myself, and it would seem there is a bone system or something to that effect in place. Anyone willing to point me in the right direction? Thanks 
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As for that dangly Axes axe or Centaur flail, they're just exceptions made by Valve.
You still can make a weapon that's supposed to be dangly, but bones are handled by Valve (probably because there's a limit for those), so if you do, just submit the item and hope that they'll do it.
That's for the custom bones, as for your specific Dazzle staff, you can use the bones that control the rings on his defaut staff,but they're pretty rigid, so the effect will be limited. Don't be afraid to try, but don't get your hopes up.