In the manual for ToB it says that you can upgrade with
star sapphires, rubies, etc. Is this just a carry-over
from BGII. The horn , etc. Or is there a place in
ToB to use these. I saved four full bags and never
found a place to use them (in ToB).

You never found a place to use gems in BG2? You could sell them you know!
No, I don't think you can use gems in BG2, only in TOB.

In memory of Khalid,
May Toril never forget your tree hugging ways.
PS: I enjoyed your company. And your wife.
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<font color="white">Cespenar can use various gems with other items to make you better goods.
He will tell you which ones will go with what item you currently posses.

Or, do a search on the topic I made long ago called...A complete guide to all things upgradeable. </font>

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Father of the wicked but cute child known as MaryBeth
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Padre de una niña bien traviosa pero guapa
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Aisukuríimu ga tabetái desu.

Thanks, apparently I didn't have anything to upgrade
with the gems, since he never brought it up. I guess
I'll start selling them from now on, just keep one or
two of each type.