You can use a huge storage space if you visit any innkeeper. You'll have access to it until the beginning of the last chapter of the game.

You can safely drop already read books or scrolls, although there are some merchants who buy them like the Antiquary in the Outskirts Inn.

Food is not so useful for healing. There's limited use for it. Try being nice to old women and give them some, see how that goes.

You'll fill up on alcohol quite fast as well. Weak and medium strength alcohol is only good for drinking contests, so you can sell that, but don't sell all of it.

Jewelry and gems can be used as gifts, but if you need some money you can sell them too.

Books should almost invariably be sold once you've read them. Jewelry (aside from a few unique signets) should pretty much always be sold (and it's usually worth good money). With food it can be worthwhile to hold onto a stack of one or two types of food (it can be given to some characters in conversation and it's nice to have it on hand and not have to go running to a merchant each time). Strong alcohol is worth holding onto since you'll be using it for potions, and it's also a good idea to hold onto a few stacks of beer or wine for use in drinking contests.

You can store items you think you will want later with an Innkeeper. These items follow you and can be accessed from the Innkeepers any time from Act I through Act IV. You'll also have access to these items at the start of Act V and the start of the Epilogue, but not after those times.

Books and jewelry are valuable; save them until you can sell them. You do not need to keep books after you have read them once. There are convenient buyers in Acts I through IV. Except: store the first Sapphire, Diamond, Silver Amber Ring, and Silver Ruby Ring you find with an Innkeeper; these are not too common and will be useful later.

I usually keep two kinds of food (because it restores a little Vitality, and eating different kinds of food stacks). The rest, you can give away (in Act I, you can ply little old ladies for information with food), sell (to waitresses and a few merchants), or donate to Melitele shrines.

Keep one or two kinds of beer and wine for drinking contests, and all strong alcohol for making potions. Keep potions; store surplus potions with the Innkeepers. A few potions can be sold, or given away in a few quests.

Sell Whetstones and Grindstones, unless you plan to use them immediately; keep Diamond Dust instead of these. Store Meteorites and Runes with the Innkeepers if you want to upgrade your swords (usually, you do); otherwise, you can sell them.

Get the STUFF mod it has alot of nice benefits for inventory, meditation, cat vision, and adds quickslots stuff; unfortunitly i dont have the link:( Try googling it.

Yea, u can drop some books but I use to sell them back to the vendors

Sadly googling is pretty useless. The vast majority of search results come up for official site forums mod section and the ones that don't tend to send you there to download anyway. Until the forums are back up it will be hard to find anything, even harder if they don't restore the forum posts.

PM me with your email address and I'll send you the file!!