@hell911:

No it's just drops from monsters as far as i can tell.

Vulgrim gives a guaranteed possessed weapon in the orange box regardless.

Yea theres a small chance for that, not sure if it affects him, but my guess is no.

You are only limited to 4 stats per possessed weapon anyway, so any existing stat on them is pretty much moot as you can get all/any the 4 stats you want by just feeding it.

EDIT: i was doing some tests on PC some time ago by giving myself hundreds of vulgrims coins, and the chance for a possessed weapon from those other boxes is way too small to bother, it's easier to just buy the orange box. You would need someone to either open up the game and look into it's insides to determine a lot of mechanics or to do an insane amount of testing and then number crunching, which for such a tiny benefit i don't think people will bother. (or developers to open up the mechanics/numbers)

Where do you get the demonheart talisman?

@Mars: One of the Death's 4 tombs, can't recall which one exactly.