Honestly, the AC hit for being overweight at low level is negligible (try it, go to the bank, and use copper to see how different amounts of weight affect your AC), so you shouldn't be worried about looting.
Get into some Derv groups in WC and NRo. They drop some bronze, the occasional fine steel, and every once in a while, a long sword that is worth over 10pp.
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Tallenn 40 Druid
Marlock 29 Enchanter
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