Noticed this with the flashlight.

This happened to me as well, however I believe the bullets ended up underneath a bed, and I was unable to get close enough to them to pick them up/show them in the vicinity window.

Happens every time ;(

Just a suggestion, perhaps go the route of Left 4 Dead with the light sources. Essentially, only the player can see their own light beams from flashlights, but the other players can not. I know it's not "realistic" but neither is seeing lights shining through walls, and it just seems to be limitation of current generation hardware to be unable to render so many dynamic shadows at once with any decent framerate. The alternative, is to leave light sources completely broken, ruining 1/2 of server uptime. At least this way, the players experience is positive.

I am also experiencing this. Newly found lamps will work. As soon as you disconnect though, they stop working from then on out. I have dropped them, and picked them back up hoping the item would "reset" but that does not work. I have also left the server, and come back picking the item up and it still does not work. They sure are nice for looting houses when they do work though...

dez1nd: Disable postprocessing fixes the issue?

Capecodcaper: This happened to me while specifically staying on the same server for testing purposes. All it took was a disconnection, you didn't even need to switch servers, just had to close the game.