Paladins are Holy Warriors. They hold virtue and honor above all things. Hence, they will never steal and will always aide fellow adventurers in times of need. Paladins will deliver the Lords Justice to those that would kill other humans willfully and maliciously. Those heathens must fall under the blade.

Items:
While they may use any and all normal items, Paladins may only use magical items with the following properties: Angels, Arch-Angels, Blessed, Champions, Fine, Glorious, Godly, Holy, Kings, Knights, Lords, Masters, Grand, Mithril, Platnum, Saintly, Sharp, Silver, Soldiers, Steel, Strong, Sturdy, Valiant, Warriors, White, Accuracy, the Ages, Balance, Brilliance, Craftsmanship, the Crusaders, Harmony, Health, the Heavens, Life, Light, Might, Quality, Radiance, Perfection, Precision, Protection, Skill, the Sky, Stability, the Stars, Strength, Vigor, Vitality, the Zodiac.

Special rule:
Uniques. Paladins may use any unique item whose description is holy and or honorable (ie. Arkaine's Valor or Sparkling Mail is ok but the Demonspike Coat is a no-no). Rather than go through the entire list, I'll make it a judgement call.

Spells:
Paladins have been blessed with limited spell use. They may read the following books/scrolls:
Healing
Heal Other
Holy Bolt
Resurrect
Identify
Town Portal (scroll only).

Shrines:
Paladins must pray at EVERY shrine they come across. That means, regardless of the description, Paladins must touch every shrine they encounter. If something bad happens, the Gods must be displeased with the Paladin. Goat Shrines and Cauldrons are pagan by nature and are avoided at all costs.

Paladins are a spin-off of Barbarians. With their limited use of magic, they still must be played as a warrior in the truest sense.