Found this on the WoW forums, poster seemed to know what he was talking about:
Very important to remember that nothing they say now (pre-pre-pre-Alpha) is at all set in stone. This kind of Panel discussion is the same thing that gave us a 4th glyph for Scribes, weapon sockets for Blacksmiths, etc. They can and will change their minds if things turn out to be unbalanced or hard to do.
That said, what I heard (and I was listening carefully
) was that:
* each craftsman can only reforge items appropriate to their profession, but they can reforge other people's gear (so you could go to a Smith to get your Plate items reforged even if you are not a Smith).
* you only get half the points back that you remove (ie taking off +10 Int gives you 5 points to spend on a new stat).
* you can not add to an existing stat on the item (so eg if you had a Str/Crit/Stam item you could not reforge the Stam into more Str).
The last two together make a pretty strong restriction on this feature and mean that you really won't be making your dream item out of any old rubbish with it. Rather, it will be used to trim off a junk stat on an otherwise useful item and turn it into a little of a more useful stat it doesn't provide.
Also lets not forget this:
hit. crit, and haste will remain in tact, and SP, AP, and MP5 will provided by base stats: int will provide SP, Agi will provide AP for mail and leather wearers and Str will provide AP for plate wearers, and Spi will provide MP5.