Zandra

You can have Clothing and Vanity items that do not give off enhancements and wear your enhancing armor. Example: I wear like 32 Items but only get the enhancements from 3.

Pretty much what Zelrius said. If the item doesn't give off enhancements ie. the cloth clothing given to you at the start, it doesn't take up an equipment slot. Consider SAO to be like Terraria, where it has an armor slot and vanity slot.

Ok. Was planning on having a +2 LD hood or cloak attatched to my heavy armour if that wasnt the case. Thank you for your help :)