Okay, I'm hanging around locating, and I find that some nice energy armor is just lying around in the wilderness, so I go get it. But, there's no priest to enhance it, so I wear the pieces that are better than what I have on, and leave the rest in my inventory. I go to Teron, walk past the thief, look in my inventory, and he stole my cool energy armor. So, of course, I kill him to get it back so I don't have to wait a while to buy it back, and then about 10 ticks later, it crumbles in my inventory. Now, I'm no pro at the inner workings of the game mechanics. I'm not even sure that this item isn't death rot. But I had it for a good 5 hours before getting it stolen and it didn't crumble. So, does the stealing script in Teron make certain items death (or time based) rot? Because if that's so, I think it should be looked at.
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