I have a feeling I'm gonna be the last one on this message board to beat this game.
Have you been reading the Datalog entries Rye? I was a bit confused about it all until I read all the entries I had gotten up to chapter 3. Makes a bit more sense now.
So far this game is very reminiscent of FFVII.

					
						

					
					
					
						
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 I think I answered my own question when I actually tried it out. Seems every item just gets transformed into EXP, but I read something about some items giving you a negative bonus. I haven't run into it yet, but hopefully there's some sort of warning before it happens.
						