To ID items, you need to get to level 3 in either the priest's or wizard's guilds. Then they'll sell you the skill. If you haven't gotten that far yet, you need to finish three quests for either guild first (after you become a member, of course.) It's possible to finish the priest's quests much earlier than the wizard's.
One other trick I noticed about identifying things, you only have to pay once for all alike items in a character's inventory, so it makes sense to give one character all items of a like type, then you'll only have to pay once... you can wind up with a lot more money that way.
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