Farm spider silk and craft yourself a set of cured silk - it'll give you some AC with very little weight. Then work from there to get upgrades. Don't wear leather IMO. Cloth then silk, then cheap upgrades in EC. Loot-wise, only keep platinum and gold - destroy silver. Loot gems and research components as well - they start dropping at around level 12 or 16. What you basically miss out on is silver, copper, and vendor weapons/armor trash (e.g. bronze weapons/armor, rawhide, fine steel) - not really huge cash cows. You'll make a decent amount of money from gems and research materials, and each of them only weigh 0.1 each. Pick up some low-weight bags too - large bags come to mind (6 large slots, 1 weight each) or maybe even some wrist pouches (4 tiny (or maybe small?) slots, something like 0.4 weight each).
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