There is currently a bug with that skill (and similar with Lockpick). If you click on the item again before the progress bar reaches the end, the bar should appear to be cancelled; wait a couple seconds and the item should be identified.
When I try, I click on the Identify glass then click on the item and wait. Even if I wait 5min after that it never identifies the item. Can you describe the process you are using in a step by step manor?
