What is a item pond room and how do i use it?
item pond
*SPOILERS*
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Remember in The Legend of Zelda: A Link to the Past, where you through in an item (e.g.: Boomerange) and then get it upgraded (e.g.: Magic Boomerange)? This is an item Pond.
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*END OF SPOILERS*
As for using it, I'm not sure if it's even fully implimented, but I've got to test out a few tricks to make a substitute for it.
It's not implemented at all yet. The flag is the only thing there right now. They might have this implemented in the latest beta though, so we might only be waiting till next release for it.