You'll have to wait just a bit as I'm on a roadtrip in NZ for one more week, followed by a month straight of business trips! I'll see if I can make some time in the hotel during my business trips, but no promises...
Basically, chapter 2 consists of you having to find the 8 'special' weapons/armors for each individuals. There's no set order you need to find these items, and you can do them in any order, so if you're really stuck on one, move on to the next one and try to come back to it later.
The items listed below are the strongest weapon/armor/shield combination for each character, and the bolded ones are the 'special' weapon you need for each individual (note the Chinese characters/kanji listed below might look slightly different as Koreans and Japanese use slightly different versions of Chinese characters...).
- Hayate 靑爆劍, スピンクス, ポセイドンシルド
- Lilian ビムソド, 紅麗鎧, 圓月万阻盾
- Lomar 綠刺劍, スピンクス, ポセイドンシルド
- Sakyo ビムソド, 白氷鎧, 圓月万阻盾
- Gonza 藍烈釜, スピンクス, ポセイドンシルド
- Alec 紫雷杖, ユニコン, クロスシルド
- Maimai ウイルチエン, 赤宝鎧, オロラシルド
- Kuku 黃念棒, ユニコン, オロラシルド
And on the question of books - no they're not the same - different books will have different effects for characters. Some will read a particular book and get nothing out of it, while as another read the same book and they'll get a nice spell or something.