There is no cape shop. You find capes in random shops around the world, although the weapon shop has quite a bit of noobie capes.
Type in: /join castle Talk to the guard and click Pactagonal Shop. The red cape costs 500 gold.
you can get them almost at any shop
Yulgar's Shop
in the tavern
there is none
The castle at swordhaven
You have to be a Guardian on AQ which unlocks a shop in the tower :D
to upgrade shop
It is for sale at the reputation shop in Lightguard.
drop and shop
i think not but if you verify you are guardian at aq you can get cool items at guardian shop
It is in the armour shop for 500,000 gold.