This is the grading system I use for
78 rpm!
  (Scroll down for 33 1/3 grading)
 Relatively simple and easy to understand!

 N   As new and unplayed (there are virtually no 78s that can categorically be claimed to be unplayed).

NM   Nearly Mint, but has been played. No visible signs of wear or damage.

E+   Plays like new, with very, very few signs of handling, such as tiny scuffs from being slipped in and out of jackets.

E   Still very shiny, near new looking, with no visible signs of wear, but a few inaudible scuffs and scratches.

E-   Still shiny but without the luster of a new record, few light scratches.

VG+   Still is an average condition 78 in which scuffs and general use has dulled the finish somewhat. Wear is moderate but playing is generally free from distortion. Surface noise not overly pronounced.

VG   Moderate, even wear throughout, but still very playable. Surface noise and scratches audible but not intrusive.

VG-   Quite playable still, but distortion and heavy graying in loud passages. Music remains loud in most passages. Surface noise and scratches well below music level.

G+   Grey throughout but still serviceable. Music begins to sound muffled. Heavy scratches.

G   Quite seriously worn and scratched, but music level is still higher than surface noise. text here to display on your page!

This is the grading system I use for
33 1/3 rpm
Relatively simple and easy to understand!

M - Perfect record and cover. More often than not, only given to sealed albums. 

NM - Almost flawless, one or two very slight visible marks or very light scuffing that in no way affect the sound of the record.

VG+  This will show signs of some play but handled with care. More than a couple minor scuffs or scratches are possible but will not affect the records play. Slight warping is possible but once again this will not affect play. Slight ring wear on cover and sleeve possible. Sleeve will show minor signs of age.
 
VG   More than a couple minor scuffs or scratches are possible and may affect the records play to a small degree. Luster isn't as good and some surface noise is possible. More prominent ring wear or wearing around edges & corners. 

G - Still plays but has seen better days. Should play through without skipping, but may have significant surface noise and warps. Cover has significant wear and possible minor tears around corners or edges.