Im looking for a bag addon that will let you set items to go into a certain bag. ie grey items go into bag 1, food in bag 3 and quest items in bag 2. Something like warhammer online has.

Not possible in WoW, sorry. But you can get addons that change the view of the bags to skin, or virtualize, what you want. I use Baggins, but there are several others to choose from.

The only exception to the "not possible in WoW" bit is specialty bags, like Mining, Herbalism, Soul Shards, etc, where those items will default to those bags.

Man there was an addon that let you title bags and you had the option to auto loot items based on quality to xx bag
I've tried googling for it but came up short :[

Check out
http://wow.curse.com/downloads/wow-addons/details/bagnon.aspx < this doesnt do what you wish however it will make your bags into one bag making it easier to sort stuff out also has search features and so on

thanks for the help, maybe one day they will add that into wow lol

Sanity Inventory I believe was a good one for people who liked to do this kind of thing.  You may also want to look into the ACE mod called Mr. Plow.  Some of the bag addons allow you to set a sort function so that it will only show things like armor, weps, quest items, food, etc.  I *think* Sanity can do it but I've haven't looked at it in awhile.  Might be called Sanity Bags now.