...the rules for wand-crafting say its impossible for the wand to be crafted at that level...
Okay, so just to be sure: The cost of a wand is (from Pathfinder Core Rulebook, pg 496) level of the spell x creator's caster level x 750 gp. So for a 1d8+1 cure would cost 750 gp for 50 charges. For a 1d8+4 would cost 3,000 gp for 50 charges. Yes you have to be a certain level to create a wand, but when you create it you can voluntarily lower your caster level to make a less expensive wand (and thereby a less effective wand); hence the lowest level needed to cast the spell being the default. If wand creation didn't allow you to lower your caster level when you create a wand, there would be no wands less than 3750 gp to buy (you have to be 5th level to take the feat Craft Wands).
now i just have to figure out if I'm amused or annoyed with the rouge using a great sword with improved feint and flanking everything *shrugs*
And he's using two feats to get that -- and already has to be standing next to his target to use the feint -- and has to make the Bluff roll everytime versus every target -- and can't carry it over past his next action -- and if it's not a humanoid target there are penalties.
In general, if it sounds fishy or too easy for your players, make them
find the rules in the book that support it. The DM doesn't have to be a 100% total expert on the rules, especially if the group is learning the game as you go... Also, to keep games from bogging down, I usually make a call at the table (often letting the player's interpretation stand more or less, unless it's really whacked) and then we check rules later to be right for the following sessions. Also, the more rulebooks you allow, the more wonkiness is going to be created. You're doing some kind of hybrid thing anyway (PF + Xc), so personally, I'd expect strangeness of rules. Just take it easy and if the players are having fun (including you) then it's okay...