Heyya!

I had a HQ Picatrix of Casting for SMN, Melded 2 Savage Might III's, and the guy would not accept it for the quest. Talked to him and everything, still had a big Red-Circle above him and I could not progress. Once i got the NQ Melded i got the pop up saying I could turn it in and the circle turned green.

Does it have to do with usage of the item? Because I had used the HQ once in a dungeon prior... I imagine he might not accept a partially damaged or Spiritbound one?