CosmicGamer:
At the size mentioned above, how do you reach what is at the bottom of a 4 foot container?
Climb inside and dig around a bit. This is why I prefer the Handy Haversack, whichever item you reach in for is always automagically on top.
CosmicGamer:
When the bag is empty, can it be flattened and folded?
Absolutely.
CosmicGamer:
As the bag is filled does it appear to be filling as seen from the outside?
Yes, until the Bag appears to be as full as a normal sack of it's size. You can still fill more until it's maximum capacity, but it will always look like a normally-sized bag.
CosmicGamer:
If you feel the contents of the bag from the outside, does it feel like a smaller version of what you put in or something else?
As I understand it, it just feels like Generic Mystery Objects, you can't tell what's in the bag without opening it and looking inside. Unless you mean reaching into the bag, in which case the objects are normal sized; the items don't get smaller, it's the Bag that's bigger on the inside.
CosmicGamer:
Can you see into the bag to find your items? What does it look like in there?
Yes, you can. It looks like the inside of a giant sack. As has been mentioned, Bags of Holding are much bigger on the inside.
CosmicGamer:
Can things get damaged from bumping around inside?
As I understand it, the sack itself is only the orifice through which the pocket dimension is accessed; you could throw a Bag of Holding around with a person inside and he wouldn't know because the interior remains stationary. There is a chance that sharp objects (unsheathed weapons, rough rubble, etc.) can pierce the inside of the Bag, and everything inside gets sucked into the Astral Plane and lost forever. (Piercing the outside of the Bag just dumps everything out on the floor.)
CosmicGamer:
Can things inside get damaged by outside forces like if the bag got struck during combat?
No, see above.
CosmicGamer:
Sorry if these are newbie questions, but in the little D&D I played years ago I never had a bag of holding.
Don't worry about it. Just remember to never,
ever put a Bag of Holding inside a Portable Hole (or vice-versa).