After using items like food, bandage or drink while holding down 'G,' my inventory would lock up. If I attempted to put any items in my hands, I would receive no action prompts - and trying to use the item from the inventory brought up the "Error putting item in your hands" error.
The only solution would to log off and then log back into the server, as this bug rendered you incapable of any item-based action.
47.124594 Experimental.