during the intial setup of your char. you go to a room with a table that contains the dagger. if i take as much as i can out of the room(pure pillaging, damn can't trust anyone with the silverware!!), can i sell all of it for cash so i can buy equipment?

You can pick them clean right down the bread they were eating if you wish (mind you, you won't get much for it). But before you take the stuff go to the room where you created all your stats, etc. There is a limeware platter on the shelf worth 650, grab it. They will come after you, so drop it, and any other stolen items, then once he's gone, pick it up and you're on you way!!!

I guess they expect you to do that.. it pops up little advice messages for some of the items..! Nice way to start off after just being released from a prison ship. :D