This is a two part essay: my recommended modifications for Federation of Magic™, and an essay on how Federation of Magic™ fixed the problem with magic.

First, I'd like to say that Federation of Magic™ was a good fix for magic. Now, I'd definitely like to defend the first book. It gave spell casters many good things to do. They were NOT the best in battle until they got much stronger (I'll have much more to say about this later), but they were great at disguise, espionage, and other non-battle activities. However, the power spectrum then got increasingly skewed. Remember that Fire Ball is not a bad spell; it just does really cruddy damage until you get up to 4th or 5th level. Also remember that a mage can never have their abilities "confiscated" at a check point. But then Federation of Magic packed in two things. First of all, it created a number of new offensive spells that were good NO MATTER WHAT LEVEL YOU WERE. Meteor does 1D6x10 damage + 2 per level. You don't have to be 5th level to enjoy it's power. Also, Lightning Arc and Fireblast were good spells that would do excellent damage regardless of level. After Federation of Magic, a spell caster would be evil in battle, unleashing awesome Firequakes, causing huge Shockwaves, summoning Meteors, breathing Dragonfire, and transforming into huge muscular energy gods to pummel enemies. Also remember that with spells like Lightning Arc and Dragonfire, magicians could overcome the problem with losing too many melee actions. They now gained common spells that gave them an energy expulsion power that they could do as a regular melee action. Second, it added the Battle Magus and Mystic Knight, magicians who put the "bad" back into "badass". These were battle magicians, something Rifts had been lacking. Not only that, but with the new TW weapons, magicians gained a huge advantage. And finally there were economical (compared to rune weapons), good TW weapons! The Deathbringer and Battle Fury Blade will rip apart enemies with no problem.

Second, after the Federation of Magic™ book was released, spell casters gained numerous skills and powers. However, since this was the 16th book released, people in the past books had to lie squalid without these new, intriguing spells. And thus, conversions:

1. If the person is question has an indication like "All spells 1-15" or something similar, then they automatically receive all Federation of Magic spells.

2. In the Federation of Magic book, they indicate that Conjurers and Warlocks can select appropriate spells with bonuses. However, the Palladium guys never list all of the spells that are thus converted. Thus, here is a list. I shall list O where it is arguable that the spell fits the spell caster. If one desires to keep the O spells for Warlocks but have them suffer penalties, merely use the P.P.E. costs listed in Federation of Magic™.

Air Warlocks

Lantern Light: 1 P.P.E. (was originally 1 P.P.E. anyways) but lasts twice as long (60 minutes per level of the warlock).

Manipulate Objects (O): 1 P.P.E. per five pounds.

Electric Arc: 4 P.P.E.

Lightblade (O): 10 P.P.E.

Sonic Blast (O): 12 P.P.E.

Lightning Arc: 15 P.P.E.

Shockwave (O): 17 P.P.E.

Wall of Wind: 20 P.P.E.

Winged Flight (O): 17 P.P.E.

Meteor (O): 38 P.P.E.

Earth Warlocks

Throwing Stones: 2 P.P.E.

Create Wood: 5 or 10 P.P.E.

Superhuman Endurance (O): 6 P.P.E.

Sonic Blast (O): 13 P.P.E.

Shockwave (O): 18 P.P.E.

Create Steel: Creates 200 pounds of raw material per level of experience for 34 P.P.E.

Giant (O): 40 P.P.E.

Illusory Forest (O): 23/45.

Meteor (O): 38 P.P.E.

Ironwood: 25 P.P.E. minimum and costs 1 P.P.E. per each two additional S.D.C. points beyond 50.

Collapse (O): 35-200 points.

Water Warlocks

Orb of Cold: 3 P.P.E.

Wave of Frost: 3 P.P.E.

Create Water: 8 P.P.E., and creates a gallon per level of experience.

Frost Blade: 7 P.P.E.

Ice: 7 P.P.E.

Fire Warlocks

Fireblast: 4 P.P.E.

Fire Blossom: 10 P.P.E.

Ballistic Fire: 13 P.P.E.

Fire Gout: 10 P.P.E.

Fire Globe: 20 P.P.E.

Dessicate the Supernatural: 25 P.P.E.

Dragon Fire: 20 P.P.E.

Meteor (O): 38 P.P.E.

Firequake: 8th level spell, 80 P.P.E.

3. Particular past demons should probably get additional spells. Here would be my own personal additions:

Fiends: Aura of Power, Cloak of Darkness, Aura of Death, Horror and Fire Blossom.