You carry everything but you won't be able to use them, it doesn't mean you'll lose. Some items and weapons will be available in Laxius Power 3 and some important equipments will be available in Laxius Power 2 (and 3 too) but all will be stored. About quests, it doesn't matter as all the quests from Laxius Power 1 can only be completed in Laxius Power 1, in Laxius Power 2 you will have a complete new game with different stuff to do.
One question, I see that there is a dungeon called the Lazandra Library that is discussed in a walkthrough I was using to look for missed secrets. I looked around the maps but did not see it.
I am using the files from Laxius shrine that had version 1.2. Is there anything I'm missing or was this dungeon removed in an update?
Are you or not see someone at rillian who talking these ranks? And that think are these add edition, not cut off think, because it isn´t offical here...