Equipment
The Equipment screen is the main screen you can use to equip or unequip items in your inventory. A equipped item is an item that gives you bonuses to existing stats and skill or provides a means to attack your enemies such as Swords and Bows.

The Equipment screen has a paperdoll like appearance on the left of the screen, clicking on an available slot on this screen then presents you with a list of items you have in your inventory that can goto this slot, for those of you not interested in such a visual system this screen also has a more simple list of all of the slots on the right of the screen as well.

The items with the highest level are displayed at the top of the screen, items in Purple are items you have currently equipped, when you click on another item on this screen it will equip that item and swap out the stats/skills of the old item.

The highest level item is not necessarily the best item to equip it depends also on what stats and item has and how useful you deem it to be to your character and its development.

You can also use the small bag icon to the right of the item name to toggle the item in and out of your sellbag if the item is not equipped.