GM Abilities?

Can A GM create items liek he can monsters?

no gm's can't directly create items. Only Devs/Dekarons can.

then do you know what the /gm DISTRIBUTE command is for?

You use the DISTRIBUTE command to show everything on the map, monsters and players.

To use it, open the big map (m), then do /gm distribute. Note on some clients this is a buggy command so for best results re-open the map for it to run properly.

Perfect way for catching vac hackers.

You can create items with a DEV char or a DEKARON char.

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