I've just encountered this recently, and after a search for any other topic on it, I thought I'd mention it.

It appears that MM7's item collision sizes sometimes has problems with some of the large shields. My character's inventory page "looked" like it had enough room, but as I tried to store the shield, the character first said, "I have no room" followed by the game crashing. But wait, it gets worse... if the game doesn't crash, be aware that that character's inventory page is now corrupted. Items like a potion will have a six square collision, instead of two, and other strange things like that.

Don't exactly know what's causing it, since I've never encounter a problem like this before.

That's odd.

I can't say I've ever had (or heard of) this problem.

Have you installed any of the patches mentioned in the sticky thread?
http://www.gog.com/en/forum/might_and_magic_series/might_and_magic_6_8_official_and_unofficial_patches

I'm pretty sure I installed the patch for mm7. I'll check again.

I double checked... I had patched mm6 but not mm7, so I did get it updated to 1.6.2. The patch didn't mention anything about inventory problems, but it hasn't happened again since patching. Of course, I'm a bit more careful.

Thanks for the reminder! 8)