An enchanted item adds more damage to the item and also adds a glow to the item.
These are the glows on weapons at certain percents:

% Glow
0 Blue Sparkle
3-39 White 
42-78 Orange
81-93 Pink
96-105 Red
108-120 Yellow

120% is max enchanted and very hard to reach

Beware, there are some risks to enchanting. When enchanting an item that is already enchanted the item can lose 3% enchant when failed. Enchanting gets even more dangerous at 57% because when enchanting to or past 57% your item can break, deeming the item worthless. The only way to prevent this from happening is with a Protection Charm that can be purchased in the Item Mall or awarded as a mighty reward, this will stop your item from breaking one time, will not be used until the item would have broken, meaning you can have failed attempts with the Protection Charm on without breaking the Protection Charm. There are also Lucky enchants which give you a 5% better chance to enchant and item for once use and then act as a Protection Charm.

To enchant an item you have to go to one of two people:
- For weapons you go to the blacksmith
- For armor, gloves, and boots you go to the tailor .

To enchant an item you need an enchanting material and a few coins the available materials are as follows:

Item % enchant Icon
Tin 3
Dark Steel 6
Black Steel 9
Steel of Eternity 12
Gold of Eternity 15

Luck effects your chance of success (100 luck gives 1% better chance of success) so Garuda's Song is very useful when enchanting. If your luck is not very high I suggest asking a fellow guild member, GS or trusted friend with high luck to enchant for you.