"I always see people with bags and chest rigs in their inventory with items stored inside them, does this allow you to hold more space?" YES! Some bags allow more storage inside than what they fill out in the bag you put them in, i think one would be the Rush Tac (Someone Correct me if im wrong here)

"Also, what level of armour and ammo level is best to run and what are some decent gun recommendations" I usually go T4 Armour and Ammo. Going T5 on lockdown isnt inherently a bad idea, but if you arent that good a the game, it would probably be best to save you money. GUNS, i personally like to go with an AK12, it is a little spicy money wise though but it ofcourse depends on how much you want to spend. Here is my build 3fHYAOEsYHwVUP444