Can I sell a domain on Ebay? How do you go about doing it correctly? Any help would be much appreciated.

I think you should be able to, I have seen many domains being sold on ebay and websites aswell.

Sure, you can do that. There are a lot of sales and autions of domain names on ebay. Other sites: greatdomains.com (they only list really good names), afternic.com, sedo.com

also, you can sell it at the following domain forums:

namepros.com
domainstate.com
dnforums.com

Of course, you can sell it on ebay, but it will mainly depend on domain you sell.