Quesion?
 

Well... I was fighting in one of the dungeons at like level 3 or something fighting a T-Rex (stupid me) but I died of course and I thought the items in your little bag weren't able to be lost since they were protected in your little bag of stuff. Unlike the things in your regular inventory which are liable to fall out when you die. I lost every single item that was in my bag =( everything...

It was most likely a bury bag? I consider them bugged. :|

Ouchies! x.x Er, if you have money with you, you'll drop that instead of stuff. (edit: I think you drop 50 or so plat max when you die.)

I have found that if you have sacks, bags, key rings, anything that holds stuff (bury bags probably don't count here) you'll only drop the bag when it's empty, so don't worry about that, having a bag won't make you lose everything that's in it when you die.

Er, hey, best way for low levels to level until they can fight safely is with bows, their a pain to make, what with all those arrows and the digging, but just, like, 10 trees will make you a nice bow with lots of arrows. I find Ebony is often eazyer to make then Composate, and alot better too, hm.

The penalty is 4 platinum coins per level or items as close to the equivalent as it can come.
Just make sure you've got money in your basic inventory at all times, and you won't have to worry about losing important things.

If you see me on one of the rare times I'm on, I'll make you some arrows via create missile spell, for free.