Items were bought, items were found, but there doesn't seem a way to equip them and none to move them from one party member to another... any thints on how this can be accomplished within the first part?

Also the found items don't seem to show up anywhere... or maybe I'm missing something.

I don't remember the exact command. Distribute, maybe?
Anyway, it can only be done from the Town menu IIRC, and it (re) equips your entire party. You can't just equip one item or one character.
It should be in the manual.