Well, the Ring could not be a vessel to transform Sauron into more corporeal form, except in the movies. In the book, he had physical form the whole time, considerably more. I believe the ring was one of those harder to explain things. Technically you can just resort back to the inscription, "One Ring to Rule Them All." Like the Witch-King prophecy, this inscription gives Sauron potential power over Middle-Earth. Having the ring strengthens his power to influence everything else.
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"What mortal feels not awe/Nor trembles at our name,
Hearing our fate-appointed power sublime/Fixed by the eternal law.
For old our office, and our fame,"
-Aeschylus, Song of the Furies
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