Just came across this trick a week ago or so. Thought I'd give it a try. Bought about 10 stacks of Rolanberry, went to CN, did the deed, walked out with about 36 881's, went to this NPC, traded one and upon trading the second I got the same message as you. I dont think I have Hero Fame but I think it is lvl 8. Now I have 35 881's taking up space that will take me forever to trade in.
Not gonna sell on AH cause then I will lose gil...I am tired of losing gil!