3 points in encumbrance is really quite a lot and you still overload? You really keep a lot of books I guess. Basically books are useless are read, unless you really want to have a collection of it. When you obtain battle tower, you will entitle to have your own stash which you can actually store in total of 400 items. But for now, I think you should sell off some books, as I dont think raw materials will take up so many space. I think you might had kept some recipes, where you actually go to the black smith and alchemy tree to get rid of them if you had any. And sell of any unused junks such as older gears. You actually had 3 weapon slots where you can interchange by pressing f1 to f3 key. This game sometimes really need quite some traveling, as certain locations are just too far from teleporter.

Regarding that idiot which stop you at few locations, if you read his mind, you basically know he just trying to scam you only.