Lol, I didn't consider option 1 but that is also a correct meaning of encumbrance; and it is encountered somewhat in the game considering there is a speed penalty if you try to equip higher level items. Also, let's be thankful our characters don't stop mvt altogether when they have too many items! In any case, I was referring to option 2. I've also learned that as you level up and/or contribute skill points to things like "armor lore", this negates any weight penalties of that item...but I'm not 100% sure about it. Can someone back me up? (or correct me?) Thanks