I was wondering if there was going to be a loot bag in this game like there was in Morrowind. I honestly hope there isn't one, the game would ruin how i had set up my home, and it eventually stopped me from playing all together. My loot bag had become so full that the game would not load at all. And I don't want this to happen again.

I loved the loot bag. It was like a magical burlap maid!. Hubs got one one day, and I thought, this could be a good thing!
So next time I went a-pillaging, I came home, dumped all my loot in a preselected spot ( you have to have so much weight/items) and created a loot bag.
It was wonderful! I could just dump my stuff all on the floor, go pillage some more, and when I returned, the house was magically clean of clutter, and the loot organized in the bag.
No more untidy piles!
I also found that my game ran better on console if I kept the cells clean of clutter, disposed of corpses, or when in the wild, used an already existing corpse as storage for loot unworthy of taking.

Yes, it was good at the start, but when I had to take something from it and it would freeze, that is when I knew it had all gone sour.

Well thats a very....positive way of looking at it?

I decorate my home in raven rock with practically everything I found; Every type of weapon and armor, organized on the shelves, artifacts, letters...even different color laterns and candles.

You can be surprised how I felt when it was all swallowed up by the overflow loot bag.... I think what I hate about it the most is that its not even placed in a considerate spot...

Oblivion didn't have overflow loot bags, so im assure we have nothing to worry about.

I wasn't much for decorating, just books on teh bookshelf, and a couple of candles. Everything else, no matter what the city orstronghold it was in, was keep containerized.
I did use the dresser in Nad's Tharen's house in Vivec as the world's biggest jewlery box.
Nads's corpse was my paper doll, I'd dress him in various clothes and suits of armor. Sick, I know.

Note: there were places where I created a loot bag, and there were places where I kept the loot well below the threshold to create a loot bag.
Nad's place in Vivec was deliberately kept clean, but I had two loot bags in both my Hlalaau fortress and in Duragrabol's house in Balmora, as well as having one in Ilenas Seranada's place in Ald Rhun.

If we may believe http://www.uesp.net/wiki/Oblivion:Glitches#Loot_Bags, then Oblivion did have loot bags. I can't remember encountering any myself, though.

The hardware for Oblivion was vastly more powerful than the hardware present for Morrowind, so I can imagine it would take more time/items for the lootbag to appear. If so, I can also imagine a same procedure for Skyrim - they'll be in the game but not easy to get. :shrug:

Items you want to display need not dissapear in loot bags.

What you do is place the items where you want them, save, and reload.
The items are now there permanently.

You can place a lootbag anywhere you want by simply placing enough items on that spot, leaving the cell, and returning.

Oblivion did indeed also have loot bags, though I think they appear in the centre of a cell.

Can you guys please explain what this lootbag thing is to me?

Played Morrowind/Oblivion for years but I've never heard of it until this thread.

If they properly implement a database for inventory contents then this should never be a problem. A 32-bit integer can store 4,294,967,296 possible values. With today's hardware, there is absolutely no reason not to use a 32-bit integer to reference items in a game like Skyrim. Therefore, it should be reasonable to expect that Skyrim would have no technical reason to prevent you from putting 4 billion items in a loot bag.

Having said that, I would like to see some reasonable physical constraints on containers for the purposes of good role-playing.

False.
I encountered an overflow loot bag in Oblivion in my Bruma home. I dumbed thousands of items in that house and eventually they just started disappearing, I eventually found the bag. It's quite small.

it takes a lot for Oblivion, but it will get there, I really hope this is in Skyrim its just a little easter egg

I had gotten one right in the middle of a desk I had spent for freaking ever decorating.

I see how they're important but I wish it would ask if you wanted one... somehow... or there was a way to get rid of one. I got annoyed once in Morrowind when I thought it would help if I took items out of the cell that it would remove the lootbag, but no it stayed even though the place was empty. I've lost a lot of things that were stuck UNDER lootbags on the floor... very upsetting.

For some bizzare reason, I've found a few empty loot bags in the middle of Oblivion gates that had just been closed. Never could work out why.

I had to check on UESP to understand what it actually was.

I get why in six years I never encountered one. I always sell everything ASAP, keep only what I exactly need, just like in real life.