I have the following:
Wizard / Warlock: Level 7 Warlock - Level 10 Wizard - Level 2 in Wizard Guild
Priest / Monk: Level 8 Monk - Level 10 Priest - Level 5 in Priest guild - Level 2 in Bushi Guild

I can NOT identify any thing. The 6 Buttons on the left ( Carry, Talk, etc.} The one for special items does not work. All it has is a Dragon on it and says Dragons Breath. It doesn't highlight or anything. What is my problem. I need help please......

MEAP

Identify comes from the Artifact skill. To identify something right click on it in your inventory and if you have an icon of a magnifing glass with a question mark in the lense you have identify.

Dear Dear Meap, If you have a character with the skill to identify, you give the item in question to that character then right click on the item in your inventory screen and it will give you the option to "identify" or "drop" or "cancel". The button you mentioned, "dragonbreath", will give you special options as your characters learn special traits like "Cloak of Night" or "Backstab" or "Sneak", etc. I hope this helps you, paying for identification is expensive, huh? God speed!

The two skills you need to be able to identify items are "ancient lore" and "artifacts". The higher your artifacts skill the more items you will successfully be able to identify. These are learned from the guilds - get yourself up to level 3 in the wizard's guild asap!!!!

Identification, as noted, happens within the inventory screen and not in the various activity boxes on the left of the screen.

Wyv