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The book specifically states that they can't have any magical armor. But does that mean they are prohibited from using talismans i.e preservation.
Also they come with poison as most ghouls but nowhere does it say that he can't be given magic weapons, so I'm curious if hes given a magic weapon will he maintain poison. Can he even have a magical weapon to begin with? and am I missing anything xD

Talismans are not armour. If the book does't specifically exclude him from taking a magic weapon then he can take them as per normal, although he will lose the benefit of poison attacks.

I usually see ogre blade, dragonbane gem, and red fury.
Near a mortis engine, your regeneration goes to 4+.

Honestly though, I'm seeing more and more people shifting to vampire lords. The 1+ armor save is too good to pass up.

I've seen Red Fury + Dragonbane Gem, near a Mortis Engine.
For a measely 55pts worth of upgrades, you still have a devastating combat monster.

I second (third?) the red fury+ dragon bane gem combination. It is cheap and effective. Adding in Ogre Blade or the Fencer's Blades + potion of foolhardiness adds to the fun.

I have seen the Ghoul King with Winged Horror used in a thematic Creatures of the Night army... But putting him out on his own with only regeneration and good looks to protect him is a risk.

At any rate, cheap SGK plus Master Necro is pretty common around here.

Sword of Bloodshed + DBG + Potion of Strenth + Red Fury + Winged Horror

8 attacks RF means 16 potential kills, which at S5 is going to blend most rank-and-file anyways. And if you see something unprotected without a champion, like a monster or unit of bloodcrushers, then you turn those into S8 attacks and use the fly move to ensure that you'll get there.

The real benefit of the SGK though is that you can fully kit him out and still run a level 4 necro. Tougher to do that with a blender lord without gimping the loadout, and making him your level 4 puts him at risk of miscasting.