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Once per battle, the Lord of Chaos can forgo his normal attacks with the reaperblade, and instead unleash the daemon within the weapon, making one attack that causes 2D6 damage. My question is this - does he still have to roll to hit and wound as normal? Thanks for any clarification anyone can offer.

Yes, he still does.

Agreed. Otherwise it would say something along the lines of "... and instead unleash the daemon within the weapon, automatically causing 2D6 damage..."

Thanks for the responses, guys.

Along those line I would like to ask if you give the chaos lord the one chaos artifact that adds one attack to any given weapon, would the chaos lord make two attacks when unleashing the demon within?

No. The rule for releasing the demon still states that you give up your normal attacks to do so.