I would imagine (though not well versed on the language FFXI is programed in) that it would be easy to set the ability to spend merits while OUT OF COMBAT but not in the mog house. I mean SE made it so that we could summon trust NPCs yet not while we hold enmity from a monster, so what would stop that system from being in place for spending merits? Oh not fighting okay you can spend merits, or your are fighting can't do it right now. But you are right Karby the adding and removing of abilities for fights... yea ... of course if they let us just max out all our merit categories that issue would be a non issue.