SnakesNBarrels is famous around here for the unique glitches he finds in a variety of games.  Now he has made a guide for people who want to learn how to duplicate items in Southpeak Interactives RPG Two Worlds.  He posted a video of how to do the glitch in his forum thread, but you really need to read his text tutorial.  The video itself just gives you the idea of what the steps of a proper duplication should look like.  I am posting the text tutorial after the jump for your reading pleasure, so continue reading to check out the process. 

This is the method that was discovered after the patch, which means you can still do it although it may take a while to get used to and you could lose your items on the first try so use an item worth little or no value until you get the hang of it.
To do the duplication glitch, you have to have you and a friend in the game. Trade your friend the item you want to duplicate and then have him agree first. Once he agrees, agree but right after you agree open your disc tray using the button on your console.
Once you’re on the dashboard, go back into the game and host a match. Have your friend trade back the items you duplicated and continue duplicating items until you have what you need. If you did the glitch wrong, you could lose your items, keep your items, or your friend could have your items.
If you or your friend have your items, keep trying until you get it right every time and then move on to the valuable items that you may have to duplicate.