I used Paralyze + Magic Damage on mine. I have 100% seen the paralyze effect work. I cannot see the magic damage effect happen however the axe now has a blue-ish glow (as opposed to green for paralyze) indicating that the magic damage effect is present. The axe makes the appropriate "magic one handed weapon" sound when you draw it.
The axe will always read "Does additional damage to Vampires" even after enchanting.
It will lose charges like a normal enchanted weapon.
I assume the "additional damage to vampires" is not an enchantment and thus never goes away. Not tested.
