That is just part of the game...you were imprisoned, and the bad dude sold alot of your stuff (that you can find in town). A few of your goodies are around to be just found, though...
Believe me, I was just as irritated...I loaded my char. up with everything I could from my entire party to export into the game, and it did not work like I wanted it to....(You can always justify yourself, and use the hack to make your items appear, as though you had found them again !!)
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