Item Types
Drop and Non-drop
There are two main types of items. Droppable items are ones you can purchase in stores and if you die, they will remain with your corpse until collected. Non-droppable items must be found in chests, received during or after quests or looted from certain creatures after they die.
Tradable and Non-tradable
Every item you purchase from stores can be traded to other players. Most of the non-drop items cannot; however, there are certain items that are non-drop which can be traded. There are also certain items that are droppable that cannot be traded.
Armor
Armor takes many shapes in IIA. Each has a different value and some offer different protections in the various channels. You may only wear one type of armor in any give location on your body (i.e.: chest, bracers, thigh, etc.). Some armor can be purchased, others must be made by a blacksmith, and the highest level armors must be quested for.
Weapons
Weapons come in two categories; melee and ranged. Melee weapons require you to be close to your enemy or target but generally do more damage than ranged weapons, while ranged weapons allow you to attack from further away with less risk. Some weapons can be purchased, a blacksmith or engineer must make others, and the highest level weapons must be quested for.
Random Items
Various items can be made that are very hard to find otherwise. Some of these require special ingredients. Other items you may find are useable immediately in some way, and others are required to complete quest missions. If you find something and are unsure of what it does, try using it. Even if you can't figure out what it is used for, someone else might have a use for it. It is also possible that the item will go towards a quest later on or allow for an upgrade to a particular item.
Creature Parts
When a creature dies, you can remove parts of its body by looting them. Some of these parts are necessary to create certain items or fulfill quests, while others can be used to heal yourself. Nearly all the parts can be sold at the stores for a profit. For the nubie, these will be your main source of income for quite some time.