Items can be dropped on the ground and picked up! It's a little weird looking right now (
the items are all anvils), but it works to the point that I can safely move on without worrying about this not working later. Hooray....
![Very Happy :D](./images/smilies/icon_biggrin.gif)
edit: scratch the items being anvils thing. that was really minor but still annoying so I fixed it. they work fine now.