K, im about to start Chapter 5 now, and i've got a LOT of stuff that i don't really know if i need to hold on to anymore, i.e keys, notes n stuff, i've got a bag of holding and its full and almost every characters inventory is full. so are all these keys and notes and stuff inportant once youve used em? or are they just takin up space????

You should absolutely not waste space on most of those items. For example, if you already used the key to the sewers you don't need it again. Most of these items can't be sold, because they are too important to the game, but once used, aren't needed further. I store all of these things, but on the off chance you might need something again, it's better not to have things spread all over the game. I use a storage chest in my stronghold to keep items like these. I go back there every now and then anyway, so it works out ok. In BGI and Icewind Dale, I used a chest in a bar or other central location.

Items that you haven't used yet should be kept with you though. Remember, the game won't automatically detect needed items you have stored in a bag. They have to be in your regular inventory. At least, I think that's right.

I always put my quest related items in a bag of holding, and so far each one has been detected in my inventory when time arouse to part with them. Even wooden stakes worked although they were tucked away in my extra-dimensional space.

my bag of holding held everything - make sure you don't put arrows and stuff like that in the bag, they take up too much space. You can prob fit everything else in there. Put potions and scrolls in there if they don't fit, use your slots for big and heavy stuff.

cool thanks for the tips guys, never dawned on me to use my stronghold
BUT now im on chaper 5 and wont get back to the stronghold til when?? like chapter 6 or something?
plus i hear that theres a lot of cool stuff to be picked up in chapter 5, so ill have to clear out some room i guess and dump some crap on the ground, cuz once i leave the underdark, i dotn get back.

Run through your stuff. See if you've completed the quest relating to it. If you've done the Umar Hills / Temple of Amaunator quest and still have the morn ritual, you can safely drop it. If you've killed the illithid underneath the temple district and are still holding onto the sewer key, get rid of it. I've found there's no need to be a packrat at all in this game; I've only regretted dropping something once (the light gem to get into Adalon's lair - d'oh). Fill your bag of holding with heavy objects and items with smaller numbers next to them (for instance, don't put 120 frost arrows in there) and you won't have any problems. Items are still counted as 'in your possession' if they're in the bag of holding.

Did anyone else prefer the old way of dealing with these things (a la BG I)? I much prefered it when things disapeared after I'd used them and they were of no more use in the game. With this new system things keep getting cluttered and I end up carrying around crap that I no longer need, I'll never use but have forgotten to drop or never learned where to use. I've had items that I bypassed their use without knowing it and then held onto them from chapter 3 until I dumped them in 5. I clued in not too long ago and started using my stronghold but I still pine for the old was of BGI

Did anyone else prefer the old way of dealing with these things (a la BG I)? I much prefered it when things disapeared after I'd used them and they were of no more use in the game. With this new system things keep getting cluttered and I end up carrying around crap that I no longer need, I'll never use but have forgotten to drop or never learned where to use. I've had items that I bypassed their use without knowing it and then held onto them from chapter 3 until I dumped them in 5. I clued in not too long ago and started using my stronghold but I still pine for the old was of BGI

I'm using a crate in Waukeen's Promenade. When I visit to buy or rest or whatever and I have items I don't need at the time, I put them in a crate that is near the Adventurer's Mart. So far I have not run into any trouble like somebody stealing from me or whatever.

Heh. I used the fish stand next to the Coronet.
(peers upward) I can't believe I said 'doh'.