Does anyone know if the Luxury Balls only work with original trainer or does the effect pass 2 a traded player? I have the old DS Lite so I have Pokemon Sapphire and am going back thru catching all the Pokemon in Luxury Balls so I can transfer them 2 my Pokemon Diamond.
Okay, You're getting confused. A luxury ball doubles the happiness value of the pokemon when caught. So normally, a pokemon is caught with 70(?) happiness but if you caught it with a Luxury ball, it would be caught at 140 happiness. Trading a pokemon will reset the value to 0 regardless of any other factor. So in your case, the pokemon migrated to Diamond will have 0 Happiness.
Source: Luxury Ball Happiness