I've been "improving" items at the blacksmith workbench, enchanting them, and selling them, but the merchants will only give me about 50% of the value that is listed in my Item menu. Does anyone know if this is wholly attributable to my Speech skill (in the 40's) or is there something else afoot?
Also, one thing that really eliminates some hassle is to buy all the furniture for your house in Whiterun. This gives you an Alchemy lab with a chest to store things in along with numerous cabinets, barrels, etc. that you can use to store items. I'm using a chest for ingredients (the one in the alchemy lab), a cabinet for blacksmithing supplies, another chest for miscellaneous crap, and a cabinet for armor/weapons that I either need to sell or want to hold on to. It really helps to eliminate all the "WHERE THE HELL DID I PUT THAT GIANT'S TOE" stuff that can be prevalent in a game like this.
For your health.