There isn't an items folder. All the items are stored in a file called Items.bif which is in your BG2/data folder. You need WinBiff from teambg to extract the bif files to get the .itm files out.
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Too set in his ways to ever relate
If he could set that aside, there'd be heaven to pay
But weathered and aged, time swept him to grave
Love conquers all? Damn, I'd say that area's gray
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