Purely a judgement call really. I don't think players would react well to losing stuff they bought with real money to an incorrect admin judgement. They tend to tolerate losing things they bought with time (xp for instance) much more readily.
In the end, there are only two "lines in the sand" as it were:
1. What's legal.
2. What people are willing to buy.
Other than that, it's all about judgement. By way of example: Will we sell a sword that is 10% better than an average forged sword? Sure. Will we sell a sword that is twice as good? Definitely not.
--matt
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