[MunchkinMan]

To be very specific about Items, you can carry (i.e., have in play) any number of Items, even ones you can't use. Items you can't use are to be turned sideways, as per the rules. You don't have to keep an Item in your hand just because you can't use it. However, you might want to leave stuff hidden to other players by keeping it in your hand. When your hand size exceeds the limit at the end of your turn, you'll have to decide about putting Items into play, or dealing with the Charity rules.