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A recent study of psychedelic mushrooms has found that rather than causing insanity, immorality and death, as is popularly believed, in fact they can often have long-lasting beneficial effects. It is even theorized that psilocybin, the active chemical in the mushrooms, may prove useful in helping to treat alcoholism and drug dependence, and in aiding seriously ill patients as they deal with psychological distress. Here are the listed effects of mushrooms, taken from Erowid:

POSITIVE

* mood lift, euphoria
* giggling, laughter, giddiness
* creative, philosophical or deep thinking : ideas flow more easily
* boring tasks or entertainment can become more interesting or funny
* sensation of insight
* life changing spiritual experience
* intense feelings of wonder
* paradoxical feeling of a normalcy and deep alteration of psyche
* may interrupt cluster sequences in those suffering from cluster headaches

NEUTRAL

* feeling more emotionally sensitive
* general change in consciousness (as with many psychoactives)
* time perception alteration
* time seems to pass more slowly (minutes seem to take hours)
* lights seem brighter, sensitivity to light
* starring and rainbow patterns around pinpoint lights
* increased detection of motion in peripheral vision
* closed-eye visuals (common at medium or stronger dose)
* sleepiness, lethargy
* pupil dilation
* sensation of energy or buzzing in the nevous system/peripheral limbs
* memories come to life

NEGATIVE

* intense feelings of fear
* headache, usually as effects wear off, sometimes beginning the next day, lasting for up to 24 hours
* nausea, gas, gastrointestinal discomfort, especially when dry mushrooms eaten raw
* mild to severe anxiety
* dizziness, confusion
* lightheadedness or fainting (in cases of lowered blood pressure)
* can precipitate or exacerbate latent or existing mental disorders
* working memory disruption (reduced ability to do tasks requiring current remembering and attention)

Another good article on this study can be found here.