I posted this on the Atari forum butI might as well post it here as it's a good idea on how to implement NPC looting. Needless to say, I don't like the way it works in the original game and I'm not entirely thrilled with the workaround, which is a workaround until we (or Troika) does something better. It might not be a bug but it's certainly annoying to have your rogue loot up so many leather armors that he finds himself encumbered and the target of every single monsters who passes by, killing him in but a few blows. Now, our implementation is about as poor as the original, I must say - there should be some way to trade with the NPCs and make it so that they don't friggin loot armors and useless weapons (i.e. rusty shortsword, giant club, other useless crap worth 1cp) . Who the hell does that anyway? Yes, it's annoying that they loot magic equipment and rings but I personally don't think that that portion of the game be disabled - because they're followers who want loot, after all. It's just them getting bogged down and the fact that they won't sell you their loot if you want it that annoys the hell out of me. I hope Troika fixes (i.e. implement a dialog option to trade with them) or we do, if we can figure out how to make our own 'merchants' which open up their inventory, and exclude armors and useless weapons from the pick up list. Being encumbered is fine, but being encumbered because you picked up 10 leather armors after each battle is fucking stupid.
I too, propose several changes in interactions with NPCs looting system. 1. No NPC will loot any weapon, armor or shit. They'll, at most, only take their share of golds and gems. (like treasures... ) 2. As I said, don't let them loot items, however, when you sell items to merchants, make the program consider "selling" as "looting". 3. Some NPCs should behave as if they are completely part of the PC group, especially those who a PC marries or brings a help. Thus no "share" at all. (Meleny for example) 4. Don't forget to keep some specific NPC loot as they "usually" did, for example, Spugnoir. 5. Another approach would be (I think it's near impossible to do tho), allow NPC to loot their share of MAGIC items (they are treasures too), but the NPC will let others use his items. However, the group won't be able to sell any of NPC's items their own and when an NPC leaves the party, he/she leaves WITH all his/her items.
It'd probably be difficult to make it so he lets other characters share his equipment, though if it is doable - that'd certainly be the best way to handle it. Otherwise, magic equipment (no scrolls, why would a warrior who can't identify scrolls want one?), gems and gold is the way to go.