QUOTE(Neo Bandit @ Mar 27 2006, 10:48 AM)
I don't think it is a glitch. I agree with Ola Martin. I think that the idea is that each merchant has a "sell limit." I could sell my $6000 sword to a merchant with $800, but the most I can get for the sword is $800. And unlike morrowind, I could sell him 50 of those swords without having to wait 24 hours.
But there is no mention in any of the literature (manual, strategy guides, etc.) about a "sell limit." Also, the Elder Scrolls games are notorious for not making things too easy on you at the sacrifice of realism--it seems very unlike them to allow a merchant in a tiny hamlet in the middle of nowhere to have unlimited funds.
I'm still waiting to hear from Bethesda on this. If I don't hear from them soon, I'm going to try calling them.