Fairy...
They took out the feeling bad feature of it. So just wear it and its fine. It adds more damage to their elemented skills. Also you need to have the right fairy in order to wear a specialist card.
Rhain...
Umm, right off the bat, HE CANNOT learn skills. Yeah sucks
As for armour it is a special kind. Rhain is an archer so you need regular archer armour and then you go to the weapon shop and "convert" the piece of armour to NPC armour. Costs money and Sands of Dona.