Yes the bag of holding is awesome and, truly, one of the most useful game items. I waited patiently to find it. I downloaded Shadowkeeper, but didn't use it. I thought it was a great tool, so I emailed it to two friends. Both cheated in the bag of holding immediately, but I waited to find it naturally. Chapter 4 in the Asylum is the location as mentioned above.
But the bag of holding isn't the answer. It will only hold a limited number of items(80 I think). And the bag counts each and every item. For example, if you put 40 arrows and 40 bullets in your regular inventory, each only takes up one spot, but in the bag of holding 40 items take up 40 spaces, so those 40 arrows and 40 bullets alone would completely fill the bag. This definately wasn't the answer for a bow/sling happy party's ammo needs...haha. And because every space counts you don't want to carry around keys, books, specialty items, etc...
A good rule of thumb to determine if an item is a specialty item is the price listed when you enter a shop. If it's 0 gold pieces, plan on storing it after you use it. This isn't always true, but it's a start.
If you don't have a keep yet, or you don't want to have to go that far to drop stuff off, then find a place you frequent in town(the Copper Coronet is a good example) with a chest or drawer, etc... Your items will be safe and your iventory will be managable.
I definately recommend using one location and one location only!!!! If you've dropped something off and you end up needing it later, you don't want to travel to every bar, inn, and house in the game to find it. One stop shopping rules...haha
MERRY CHRISTMAS
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