1. Create new BOM Template. Hide the Item# column (this is a required column and cannot be deleted.) Insert your own custom column called something like "ItemNUM" or "Item". Do not use "Itemno" because that is the name of the original SolidWorks column. The text in the Header can say whatever you want. See more detail in the Help for "bill of materials: custom properties".
2. Add the new Custom File Property ("ItemNUM" or "Item"

to every part in existing assemblies.
3. For New projects: Add the Custom File Property ("ItemNUM" or "item"

to your Part Template. See help for "document template."
4. Step 2 above means you will no longer get automatic balloon numbering anymore. Balloon number is tied to the original "Itemno" column, which apperently you don’t want, because that number can often change. Instead, perform all ballooning using only custom text. That is, use split circle balloons with custom text above (where you manually type item) and custom text below (where you manually type sheet).
This method has the advantage that you have absolute control over your file property "Item" So you can maunally change your numbers if for some reason an overlap in numbers accidentally takes place between designers.
Hope this helps,
Anyone have any better ideas?????
Regards,
Jon