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In the previous game, you were generally were able to upgrade your inventory and ammo capacities at specific points in the game.

Helping a claptrap in an area usually rewarded you with a backpack upgrade and you could upgrade your ammo capacities at the nearest ammo dump if you have the money.

However so far in Borderlands 2, I haven't found a claptrap that needed rescuing and the ammo dumps only carry spare ammo. I keep running out of inventory space very quickly and am constantly running out of ammo in heavy firefights which is getting irritating. I have plenty of money, but not enough carrying capacity.

At what points am I able to upgrade my inventory capacity and my ammo capacity?

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Ammo and backpack upgrades are acquired on the black market. These purchases have to be made with Eridium; a sought after mineral on Pandora. Once you reach the city of 'Sanctuary', one of the first missions you encounter is entitled 'Plan B'. You will receive 4 Eridium from Scooter, allowing you to make your first purchase at 'Earl's black Market'.

http://borderlands.wikia.com/wiki/Eridium

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Also note that despite what you might expect, there's no extra upgrades you can unlock in playthrough 2 –  Ben Brocka Oct 2 '12 at 19:11
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You can upgrade through Crazy Earl with Eriduim. I am currently maxed out at a 27 space backpack. I believe the upgrades cost are set to 4, 8, 16, and 20 but don't quote me on that part.

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I would assume you can get another set of upgrades in play through 2, but I am not there yet. –  Kexlox Oct 2 '12 at 17:54
    
Sorry, dude. Didn't see your edit in the queue. >< –  Frank Oct 2 '12 at 17:59
    
@Kexlox nope, you don't –  Ben Brocka Oct 2 '12 at 19:10
    
Upgrade costs start at 4 and go up by 4 each time, up to 20. That is, your list is missing “12”… –  Donal Fellows Oct 16 '12 at 22:04
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protected by Community Jan 25 '13 at 12:19

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