Is there a way to identify items while on a quest? Or do you have to do it in a town? It would be cool to be able to use the items you find on your current quest.

Yes there is - you need to gain the ability for yourself. A wizard type character needs to reach at least level 3 in the Wizard's guild and gain the skills ANCIENT LORE and ARTIFACTS - once you have both of these, when you click on an item in your inventory you will see in the item window a question mark icon at the bottom - clicking that will allow you to identify items - but note - more valuable items require higher artifact skill - so keep traingin in that!!

Wyv

Thanks, I will work on it.