Aside for some special bosses item rewards, most of item can be found in the whole game. The game is VERY generous about enemy drops though - your rarely will have any equips or assistance items (sometimes TOO MUCH), yeah managing the inventory space can be a bit tricky at start.

What I REALLY found hard on the game is unlock areas. You need to talk to EVERYONE a lot of times, and/or rise the LV of the shops may help the shop keepers chats with you too.

This game has a GRUDGE lv that rises whenever you do bad things (or naughty things) to the NPCs. Do remember that you don't need to hit a button to interact with npcs - just tackle them to it BUT do that front their front or you end up gripping their assess by mistake. When you GRUDGE level is high (around 30) they start to ignore you, and THAT can prevent you to advance the game (don't worry there still a way to lower your GRUDGE lv, although is sure to kill quest on lower LVs). the Max lv of the game is 50, when you reach it the game became very easy to deal (and it's not so hard or long to reach it).