
The item you want to salvage goes in the left slot. Then you can take the items in the right slot if you have the experience. The maximum level this can get to is 59. Over 59, a message saying "Too Expensive!" will show up and you can't salvage the item.
Here is what happens every 200 levels of repair skill:
- Levels 0 - 199: nothing happens
- Levels 200 - 399: reduces the amount of experience by 2 levels
- Levels 400 - 599: reduces 4 levels
- Levels 600 - 799: reduces 6 levels
- Levels 800 - 999: reduces 8 levels
- Levels 1000 - 1199: reduces 10 levels
- Level 1200: reduces 12 levels
Here is what the golden anvil looks like:

The golden anvil on the left is normal, the one in the middle is slightly damaged, and the one on the right is very damaged.
If you want to add this, here is a link to the textures:
http://www.mediafire.com/download/lbbqo ... _Anvil.zip" onclick="window.open(this.href);return false;
I hope this gets added!

~camyoshi