Recycling Loot

[Dishmab]

You could get some thing like scrap steel (or other approriate metal) that you could melt into ingots.

[Phinneas]

I think that to start off with the system should be simple.  Disassembly by NPC blacksmiths for a fee.  You get a weapon kit back.  You work it back through the process to a handle and blade, then do what you what you normally do with those items.  This would also allow more freedom in crafting with the ability to work anything backward through the steps.  Bonus, an improvement to the "reality" of the game.

So imagine the above integrated and debugged.  Working fine, considered very stable.  /me grins

Next, implement the system for another job.  Lets say enchanting.  I do not know anything about it so I will not make myself look stupid.

Next imagine the enchanting and weapon subsystems are implemented, debugged, and at stable release.  Now we combine them.  An enchanted weapon cannot be disassembled without some risk.  After all, the enchantment was on a complete weapon so who knows what will happen when the mass that holds it together is broken.  Now we need an enchanter(ess) to remove the enchantment first.  In the process the magic user gains xp, or maybe can learn an enchantment that only exists on looted items.

An exciting idea, but it should begin simply I think.  Being able to reverse the crafting (or any profession's) process would be a wonderful addition I think.

[leonideus]

I'm opposed to it being an npc thing, i think craftsmen who can create something should be able to break it down. there is a way to recycle the parts in smithing at least, just add dismantle of a full weapon with a suitable ql penalty, and if its a ql 50 or so item a chance of outright disintegrating. its low quality to begin with so there's no guarantees it will succeed. If it does give the appropriate pieces, if not lets say half the stocks that would go into it rounded up or in the case of knives and dagger just toss them 2 ingots. the enchant stuff would be nice to have a salvageable gem that could be set in another item but that could be a lot more complex and a bit excessive. and the socket would be lost, lets face it, its trash compared to the enchantment its holding.

[Rigwyn]

Scavenging should be a skill, and one that can increase with practice and acquired tools. Perhaps some forms of magic could be used to help separate and clean things up. 

[Gaheris]

I think it's a excellent idea.
I agree there are items in the game, that make it a little hard, so as many stated start with easy items.
Non-enchanted items, like swords, leather armor.
A blacksmith who can make swords, surely can dismantle it. (Heck it can break things,  that i'm not capable of creating). I don't think it should be a special / new skill, nor a NPC where to do it.
It's just reverse-crafting. Of course with losing some of the original amount and based on your skill, with loss of the quality.