Newbie Guide:
By their arts, the Dwarven craftsmen can crystallize certain substances into Leaguam, Ravi, Ciel and Arch, through a process they call the "Crystallization Ritual." These craftsmen have assigned grades to every substance in the world, according to the types of crystal they form during the ritual.
I am quite sure that the items you now use cannot be crystallized -- they are "no grade" as the Dwarves would put it. However, sabers or assassin knives, which may be acquired beginning at level 20, are valued at "D-Grade," for example.
The grades range up to A-Grade, and a few Dwarven craftsmen speak of an "S grade," which surpasses all others. To determine the grade of an item in your inventory, simply click on it in the Inventory window, and the information will be displayed. An icon next to the item's name will tell you the grade.
Remember, however, that an item will not necessarily enhance your performance just because it's graded. Such items cannot be mastered by just anybody. At your level, even a D-Grade would be difficult to handle. You must be level 20 or over to master D-Grade equipment. If you try to use the equipment at a lower level, you will not gain all the abilities it is capable of, and your speed or your hit rate will usually suffer dramatically as well.
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