New items from chests:
     Save  the  game  before  opening  a  chest.  If  you do not get a
valuable  item,  reset  the  game,  reload the saved game and open the
chest again. Most chests will give items at random.

More storage:
     Use the chest in the Blacksmith's shop to store extra inventory
items.

Hint:
     In the beginning of the game, go to the cemetery goblin guard.
When you go and talk to him kill him by keep hitting without letting
off. If you survive then you should go up to level 9.