I take a somewhat (http://en.wikipedia.org/wiki/GNS_Theory#Simulationism) simulationist view to things.<br/><br/>I'm inclined to say that the items themselves remain corporeal. It's like the librarian from Ghostbusters; her clothes were just as incorporeal as she was- but she could move very corporeal books around and such. ;)<br/><br/>Look at it from another perspective, suppose Ellen decided to wield an ordinary weapon with Ghostly Grasp. It would have to be able to interract with physical beings in order to function. :P ("Nonmagical attacks made by an incorporeal creature with a melee weapon have no effect on corporeal targets [...] If an incorporeal creature uses a thrown weapon or a ranged weapon, the projectile becomes corporeal as soon as it is fired and can affect a corporeal target normally (no miss chance).)<br/><br/>I'd personally be in favor of making it consistent with this; "Essentially, a ghost touch weapon counts as either corporeal or incorporeal at any given time, whichever is more beneficial to the wielder."<br/><br/>So, it could be physical and incorporeal at the same time... in a way. Physical in that it protects against corporeal attacks and would be touchable, immaterial in that it protects against ethereal attacks as well.<br/><br/>Man, this whole ghost thing just keeps showing up. :P