Hi I ran Fish Tycoon this morning, to find that one of my adult fish was on the edge of death. In a final bid to save what I had, I impregnated another fish with it, then popped him (or her :P) into the Sale Tank. When I checked on it later, it had reached 0 health, but didn't die. Because it was a Magic Fish I was unsure whether that was supposed to happen or not, so I moved it back into Tank One, where it promptly died
So... my question is; when fish are in the Sale Tank, can they die?

Yes, fish can die in any tank. What you experienced with your fishie was probably due to the fact that fish don't die immediately when their health meter appears to be completely empty. Arthur explains it this way:

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Also note that the Fish's 'health meter' is like a car's gas-tank meter....when it says 'empty' there might still actually be a little gas left in the tank...

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Ah... thank you I'll remember that. Also... because this might help me a bit - How many "Health Levels" are there? As in... how many notches it moves down until it gets to 0? Thanx again for the help

There really aren't 'levels' of health represented by the meter, despite the fact that the meters are color-coded. It's better to think of it as a percentage display - full being 100% healthy and empty being 0% healthy (and on death's doorstep) - with different conditions producing differing amounts of change in the fish's health. For example, overfeeding a fish reduces its health immediately by 2%. Overfeed it 50 times in rapid succession and, well, you know what will happen!

Thank you It's just I wanted to be able to work out which of my rarer fishies would survive to be breedable/sellable. Their health drops by a certain amount each time they age by 1, because the Environment is, as of yet, still only Level 1... so if that amount is more than a 20th of their total health, they wouldn't survive until adulthood... if you know what I mean :P

Oh, yes, we've all had fishies die at age 5 and age 19 many, many times. After awhile, you'll be able to discern the rate of health decline in various fishies when they are swimming around in inadequate environments.