Yeah, the shopkeeps will just say that I'm a powerful mage or something and refuse to trade or repair my stuff. And their attitude rating towards me drops everytime I speak to them.
So far I've not met any of the Magic Shopkeeps who can repair my armour yet. I've got a Glove of Dex + 2 breaking on me and I can't use it anymore, red and broken, beyond repair, sad..
I'll try the rest of the merchants, thanks for the hints.
Same for me, only on the opposite side of the spectrum. However, it's only annoying 'cause this way I have to resort to general stores to buy HP/Fatigue restorers for Virgil, and they mostly only carry the lesser ones. Oh, and because I just can't seem to find a decent, non-magical armour with a high FR rating.
As others pointed out, there are magical smiths around; I clearly recall there's one in Caladon (if you're that far in the story, that is, but, given you're so high on the magic scale, I suppose you are), and I think there's one in Tarant as well. Also, there's an Elven junk dealer in Ashbury, near the docks; I think he repairs stuff.