My friend was looking at swords on ebay, and it said that the blade was made of Damascus steel...?

look at this link

http://en.wikipedia.org/wiki/Damascus_steel

and it tells you that wootz steel is sold as damscus steel because it's quite similar

good luck

Actualy, the secrets of forging Damascus steel has been rediscovered. In the 1970s, a Russian scientist found that he could duplicate the steel found in old Damascene swords.

While it is true that such swords (which have to be made by hand) would be more expensive than usual, you must keep in mind that the majority of Damascus swords are still forged in Damascus. Syria is a highly inexpensive country, and the price of a Damascus blade, while being expensive to Syrians, would be cheap to Westerners.

In reference to your question about wether there is anything special about Damascus steel, the answer is yes. At the time of its creation, Damascus steel was the lightest and most flexiable metal known to man, even lighter than the steel Katana swords used by the Samurai of Japan. During the Crusades, Europeans reported that the Arab blades were capable of bending in the wind, and floating on water. While these are certainly exaggerations, they are proof that Damascus blades were far lighter and stronger than the crude iron weapons used by the Crusaders.

Damascus steel is just pattern welded steel that makes it alternately hard and soft and gives a beautiful pattern.