Yeah, you should be able to garrison units in King Mark's castle. It is rather annoying that you can't even sell troops, simply disband them. The unit reserve helps a little, but not much. I found myself using unwanted troops as cannon fodder so that I could get a stack of something else, rather than simply disbanding them.
About garrisoning items, that'd be nice too, but you can just keep them in your inventory, so I'm not too bothered about that. What does bother me is that if you sell an item it seems to disappear from the game. That's annoying. It should stay wherever you sell it.
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