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From what I have read, Magic Find doesn't boost the chance that you will find an item with Magic abilities on it, instead that it boosts the stats themselves. Any truth to this?
Not in the least, everything scales to your level and all grades of gear have identical stats.
Boosted magic increases your chance to get rarer items and more lower grade items. It also does not work on chests, only drops.
So say its not really worth it to use magic find on a dungeon run, but it is worth it to use it when your chaining events. Especialy if the events result in alot of kills/loot.