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HankronPointing out or otherwise detailing all the flaws (within reason, most auction bidders aren't there to read a novel), will often hurt you in the short run but help you in the long run. In the long run, if it is known to bidders that you detail all the faults of an item and provide big pictures, they will not only bid with confidence but will have no doubt when you claim "This is perfect." On the other hand, all those sellers who attach the adjective "rare" to 1988 Fleer Tom Glavine Rookies and such, have dug themselves in a hole when they actually have something that is rare (This also explains how the term 'ultra-rare' came into being).
Following Jay's line, I often describe the quality of the image provided. This can include saying "Item is much better than in picture" and "Be aware that the image hides some of the creasing."
Like trying to find twin snowflakes, I doubt I've ever had a digital image that perfectly reflected the actual item.