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I've ended (cashed-in) quests with item/weapon rewards while I had a full inventory, and I couldn't tell what happened to the items. I don't think they made it to my inventory, but they weren't on the floor and there wasn't an option to close-out the quest again. Were the items liquidated into money, held on the side somewhere, or did they just disappear? What happens in this case?

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Item drop in this game = throwing your item across the room. Did you check 20+ feet in front of you? Or did it fall down a ledge ? – Zero Stack Sep 19 '12 at 10:00
I would look for a minute or two near the quest bulletin boards before giving up each time. There's nowhere for them to be thrown. I'm thinking they're liquidated, but I wanted to confirm. – Wolf Sep 19 '12 at 10:03
up vote 6 down vote accepted

When you have a full inventory, any quest rewards you get should still end up in your backpack. For example, if you have 15/15 backpack slots full and you get a SMG from a quest, your gun will be in your inventory and your backpack should display 16/15 capacity now.

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Also, when you have a 29/27 inventory, you can put 2 items from your inventory into bank even if the bank is full. – AaronLS Nov 4 '12 at 9:17

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