You
can smash containers and other objects (like doors and windows), my friend.
Just go into combat mode by clicking the big button with a shield on the lower left corner, press alt and click on the barrel. Unfortunately, this method will almost always damage your weapons, so I suggest using a big hammer or axe, they're pretty tough.
Lockpicking is one of the best skills in the game, man. But to use the skill effectively you'd have to have at least three ranks in it (and while you're at it, go get some expert training). Oh, and don't forget to get some lockpicks. Put the lockpicks in one of your quickslots, press the corresponding number (1-0), click the container, and voila, instant loot. Some chests are harder to pick, though, so you'd have to pick it a few times before you're successful. And save the game before you pick anything, in case it gets jammed. In which case, you'll never be able to open it unless you destroy it. I almost forgot, don't depent on Virgil. He's not very good at picking locks.
If you want loads of equipment and money, try doing this. Wait until it's 22:00, by then all the shopkeepers'll be asleep. Pick the lock on the front door or window. Make sure there aren't any guards around, otherwise they'll attack you. Go to the bedroom or wherever the shopkeeper keeps his stash and pick the lock on the container. Some shopkeepers will suddenly wake up and attack you, so be careful, try prowling. Inside the container you'll find everything on the shop's inventory. Steal everything you can and sell him back the stuff you won't need in the morning. I've been doing this since day one and I've got so much money I feel like I'm cheating. Never fails. If you destroy the container, though, the stock won't replenish. But if you're chaotic evil, just kill everyone and destroy everything. Hehe.
opening barrels etc 
Linear Mode
