On forum: 01/10/2010
I don't think there's an easy way. The least gross method I can come up with is spawning a container underground and moving all your damaged items into it while you have the trade window open. And I guess you'd want to have a bunch of untradeable analogues for each item to spawn into your inventory temporarily so it doesn't just look like your stuff disappeared.
Alternately, you could just rewrite the entire trade interface from scratch as a script and have it do whatever you want.
So, I guess there's to much work for that simple function. As always, thank you