Utilizing the program acquired in the thread above, I discovered a way how to remove those annoying bugged equipment items such as the House of Ballad armour. This worked for me, and I imagine it would work for all bugged equipment, but I've only tested the House of Ballad armour.

What this simple edit does is simply allow the item to once again be moved to a junk pile.

------ TUT -------

1. Open program (KOAR Save Editor from thread above)

2. Load your save file, make sure you know the durability on the
equipment in question -- you'll need it to find it in the list.

3. Once discovered, choose the hex editor option... You should get a code like this:

D0 03 63 02 0B 00 00 00 68 D5 24 00 03 2B 00 00 00 63 00 38 03 02 00 00 00 D5 E7 05 00 FF FF FF FF A4 CB 1C 00 FF FF FF FF 00 00 00 00 92 59 17 42 00 00 24 42 01 00 00 00 84 00 00

(This is the code for the bugged House of Ballad hood)

4. This is the part we want: 00 00 00 84 00 00... Simply change 84 to 24, and now you should be able to junk this item.

Once again, I'm not sure if this works for all equipment, but it did work for this particular set.

Hopefully this helps someone, cheers.