a little more into detail on how to identify... you can use the identify skill, meaning you would need one skill level in the identify skill to identify a level 1 item, skill level 2 for a level 2 item, and so on and so forth...
or you can go to the shop and click on the magnifying glass icon near the top right of the barter window... then just scroll down to the item you want identified (the value of the item will be in a blue colour, rather than the standard grayish colour). just click the item and the dude will tell you how much it costs to identify.
hope that answers your question on identifying... <img src="/ubbthreads/images/graemlins/wave.gif" alt="" />
