Crafting ingredients/parts/reagents and keys all go into special bags just for holding them, so they do not count against your inventory (I don't know the upper limit for those offhand, probably 100). I don't know if the craftables bags take up space. Everything else, from notes to swords of bludgeoning do count against the limit. You can have stacks of an item and it will only count as one slot in your inventory (e.g. potions).
Note that to pick up a potion that you already have, you need at least 1 slot free. I think the game goes and puts a stackable into a free slot first, then goes and moves it into the relevant stack instead of just putting it in the stack first. The stack limit for potions and for most other stackables seems to be 10. Lockpicks go to 99, I think the same for repeatable quest items like Freeman Armbands.
If you've stolen a stackable item, it will go into it's own pile, and won't be disbanded until you use up the stack marked stolen. If you have a full stack, then new items will be put into the next stack, which can be the stolen stack. You can end up with 2 incomplete stacks this way.
Update: This works with both the Steam and Origin version of the game, and has gotten easier to do than from my original post. There is no additional plugin you need to install or forum threads to monitor.
First, you need to go to this site and download the program found there, called widescreen fixer. There is a .7z file you need to download. You will need a program like winrar or 7-zip to open and extract the files. Extract the files anyplace you like.
Now, open the "Widescreen Fixer.exe" in the main widescreen fixer directory. In the dropdown list you should see Kingdoms of Amalur listed:
At this point, click the standard "config" wheel to the right of the drop-down:
Change the game version to the Steam 1.0.1 option (the most recent patch) if you are using Steam, and the Origin 1.0.1 option if you are using Origin, and then select your field of view options. I have mine set to 90 and it is much better, but you could go even higher if you wanted. Then, set your resolution to the resolution of your monitor (1920x1080, etc.), by default it should auto-detect your resolution. Save your settings and close this window.
If you click on the "Settings" tab in the main Window Fixer, at the bottom you will see the following dialogue:
You can click your mouse in the box that says "Add" and press a key which will tell "Widescreen fixer" to activate the fix once you are in the game.
From here, start KoA:R from your respective location (Steam or Origin). Now, once at the main menu, press the key you set it to above, I believe the default is the "Multiply" key on the numpad. Then, start your game as normal. As soon as you start moving around you should see the field of view move out.
Here are some in game shots of my rather low level mage, with and without this fix:
The default Field of View:
The field of view set to "90" through the widescreen fixer at 1920x1080 with my character standing at the exact same spot looking in the same direction:
It makes quite the difference! I haven't had much time to test if this creates graphical artifacts or not. From what I can tell most of the artifacts have been corrected since my initial answer to this question. Since it is turned on via the "Widescreen Fixer" program, it is easy enough to disable if you decide you don't like it. Simply hit the key to turn it on again to turn it off when back at the menu screen, or exit the game and do not run Widescreen fixer this time. You can always just remove the Widescreen Fixer directory if you don't like the use this.
In addition, as the game is patched, it may stop this FOV fix from working, so you may need to update the widescreen fixer program in the event that happens.
Additional note about the security concerns involved with Widescreen Fixer (based on the comments):
I received word from the creator of the Widescreen Fixer program (David Rudie) that the program does not in any way try to access the internet. In the 2.X versions of the code the check box you see in the interface tried to do auto-updating but did not work correctly, so that code was removed but the check box is still there in the 3.X versions of the program.
In addition, he says:
A couple of users reported issues that Widescreen Fixer would crash on
launch. After looking into their error messages it turns out that
Microsoft will mark certain things downloaded from the internet as
remote, even if it's stored locally. Users then have to right-click on
the .exe file, get properties, and then unblock it.
All I can say for sure is that nothing in the code accesses the
internet.
Hopefully anyone who wants to use this fix that was concerned about security issues (Windows 7 did not prompt me for any firewall access but users in the comments reported that some dedicated firewall programs did) will have their concerns put to rest.
Best Answer
Every item you craft once you are at Blacksmithing level 10 is Mastercrafted.
A Mastercrafted item is not necessarily purple - it is more likely green or blue. The only difference is that a Mastercrafted item gets an additional stat added to it for free.
I tested this by creating a sword with the worst components possible - an Iron Sword (18 damage), a Crude Hilt (3 Physical Damage), and skipped all of the other components. The resulting item has a default name of "Mastercrafted Iron Longsword", is green, and had the following stats:
The +3% Damage was added since I have Blacksmithing level 10 (making the item Mastercrafted).