does that mean that this item can only be used by me or that the item now stuck there forever (stopping me from upgrading if i find a better weapon)?

In most games at least, "bind on equip" means that when you equip them, you can no longer trade them with other players.

If you equip it you can't give it to another player, if you don't you can trade it/sell it etc.

thanks guys.

Note that you also can't give it to another character once you've equipped it if it's Bind on Equip. Through the crafting merchant you can do a lot of upgrading and eventually swapping of items (you can upgrade a blue item to purple--though you have to be using the character who could normally equip the item--and then you can switch to another character and use the crafter to transform a purple item that character couldn't normally use into one he can), but you can't swap an item once it's bound.

So if you come across blues/purples that don't blow you away for your current character, I've found it's worth hanging onto/upgrading them without equipping them so I have a stash of purps to outfit a character I decide to start leveling.