It should also be noted that if one gives Gwen enough red iris flowers and at least the flute, she not only gives the Tapestry Shred, but will heal for +20 as she follows (listen for when she plays the flute). There were actually a couple of times when I was soloing and got overwhelmed that she saved my character.
Still not sure what that Tapestry Shred is for though...
Regarding Salvaging...
Anything that says "highly salvageable" or is a salvage item in the description (like Grawl armor, etc), go ahead and use the salvage kit on them. Sometimes an unidentified item will turn into a highly salvageable one after using the identification kit on it.
However, there's some debate as to whether it's worth breaking down every single item into crafting materials, or simply selling those off. The salvage kit costs 40g, and gives ten uses... that's 4g each use. If the crafting items gained through salvaging are worth only 3g or less, then it's more cost effective to just sell those items off before salvaging them. But sometimes the crafting items are worth more than what was salvaged...
So it's kind of finding a balance there. Some like to salvage everything for materials and take them into post-searing. Some, like myself, only do the highly salvageable and salvage-specific items, then sell off the rest for gold. Others dont salvage anything, and take the gold through selling only.
Fwiw, I followed the second option on my last character. He's in post-searing now, and has more crafting materials then he knows what to do with.
