this is for TFS 0.4, you may use something similar to this
function onUse(cid, item, fromPosition, itemEx, toPosition)
if(item.itemid == XXXX and itemEx.itemid == YYYY) then
doTransformItem(itemEx.uid, ZZZZ)
doRemoveItem(item.uid, 1)
edit: the end result of this fucntion...