Made a video of a possible fix and identification of the issue.

http://www.youtube.com/watch?v=HVp5MqPhMw4

I did something similar to what xzosimusx described.

It sounds like your issue might be more severe central, for me I'd just click on an item and drag it out to drop it, it wouldn't look like it dropped, but when you re-log it will have dropped.

It's a long and stupid fix if you want your gear, but at least we know what the problem is now.

Hey folks, had the same issue, might've found a fix, here's a video of it, only the first few minutes really matter all that much.

http://www.youtube.com/watch?v=HVp5MqPhMw4