Rattan Armor (藤甲) in Yuhang
Right at the start, before you ever leave Yuhang, walk into the trees in the market by the dock, near the smithy, and search around carefully. A suit of Rattan Armor is hidden there, a solid early upgrade over the clothes Li Xiaoyao starts in.
A Marching Pill from Brother Zhang Si
When the boat drops you on Xianling Island, talk to the boatman Zhang Si a couple of times. Worried about you, he hands over a Marching Pill (行军丹), a healing pill.
Miao Saber (苗刀) in the Water Moon Palace
Inside the Water Moon Palace on Xianling Island, find the chest beside the Guanyin statue. The first search gives Guanyin talismans, but keep pressing Enter on the empty-looking chest and a Miao Saber turns up, a strong weapon for that early point.
Qingfeng Sword (青锋剑) from the Yangzhou sword grinder
Keep the rusty sword Aunt Li packs for you. In Yangzhou, the grinder in the house to the right of the wine shop offers to sharpen it. Pay him 2,500 coins instead of taking the free job, then come back after the female thief is caught and before you leave town, and he hands you a Qingfeng Sword. The free job only gives a plain iron sword.
Hidden corridor in the Liu mansion
In the capital, the Liu family mansion has a staircase in the top-left of the main hall. Stop halfway up between the ground floor and the upper floor and walk right: an invisible corridor runs behind the wall. Search along it to find Immortal's Tea (神仙茶).
Lotus-leaf room in Yinlong Cave
At the bottom of Yinlong Cave (隐龙窟), the snake demon's lair, step across the lotus leaves on the water to reach a small hidden room. It holds a Golden Silkworm King (金蚕王), which raises a character by one level, and a Stealth Gu (隐蛊). The lotus path was added in the Windows versions, so it is not in the DOS game.
Stealing Trial Fruit in the Demon Locking Tower
On the lower floors of the Demon Locking Tower on Mount Shu, one monster keeps calling copies of itself into the fight. Use Li Xiaoyao's Flying Dragon Cloud Hand (飞龙探云手) steal skill on them for Trial Fruit (试炼果), which permanently raises a stat. Kill the copies but leave one alive so it keeps calling more for you to rob.
Dustless Sword (无尘剑) behind a false wall
At the bottom of the Trial Cave (试炼窟), in Nüwa's ruins, look for a secret passage in the south-east corner of the tomb. Head north through it; at the upper left a wall can be walked through. Behind it lies a Reed Raft (芦苇漂). Carry it down to the river, float across, and the Dustless Sword, Li Xiaoyao's strongest blade, waits on the far side. There is only one in the game.