Small Bag: Small items. 1x1 and perhaps some 2x1 items
Key Rings: Keys/Lockpicks
Gem Bag: Gems/Jewelry
Quiver: Ammunition (NO THROWING AXES)
Potion Container: Potions
Healing Container: Healing Kits and things of equal size within reason
2x2 Bag (brown bags, boxes, etc): Anything and
everything.
Clothing Bags: Clothing/Armor
Weapon Sheaths: Weapons.
Magic Bags of any size/shape: Anything and everything
Hope this clarifies this ruling sufficiently.
Expected Punishment: If caught with illegally bagged items, you will find your bag (unless it is magical) ripped and the contents spilled upon the ground near you.
Only Possible Exception: You are new to the server and haven't read this rule in which case you won't know about this exception so it's up to us whether or not we want it to apply
Repeat Offenders: Expect more harsh punishments