#1 - Nov. 5, 2011, 5:48 a.m.
I placed several items on my Wizard into the shared stash with the intention of selling off everything in there. I was able to post up a few items on the AH without issue until I came across a wizard orb that produced an error. Trying to post the item gave me a message telling me damaged items can't be sold. I took a closer look at my item and noticed it was showing that it had full durability. See the screenshots below.
Auction House Message:
http://i.imgur.com/F9i6T.jpg
Full Durability Orb from AH screen:
http://i.imgur.com/G0XOM.jpg
I then hoped onto my Wizard to take a closer look at the orb. It was also showing up as full durability when I pulled it out of the stash and placed it in my inventory. I then placed it back in my stash and tried posting it on the AH again, still receiving the same error. I went back on my Wizard again to see if repairing all my items at the Blacksmith would fix the issue.
Note that the orb was sitting in my bags and that the All Items repair cost was 2 gold. All the items on my character and in my bags were showing as fully repaired. I clicked on the All Items option and stuck the orb back into the stash. I went back to the AH and was now able to post the item up.
Worth noting, I had been using the orb I was trying to sell before putting it up for sale. It would appear as though there is some kind of bug that was improperly displaying the durability of the item.