I heard about the requirement to have it with you the first time you talk to him in 0.800, too.
Well, guess what, I only started playing with 0.800 (except for a bit of messing around in earlier versions) - so no, I didn't know what the guy would want when I first talked to him.
The "how do you define better" question has already been answered. Since any armor has numbers attached to it, it's a non-issue.
Hope they'll look into this, should be a really quick fix. Or so I think, being the non-savy I am.