Thank you all for the help.

And neocoolzero, I could not get it to work by doing what you mentioned. I think it was because I had assigned my sheathe/unsheathe weapon key to one of my side mouse buttons. Regardless, setting that one back to "R" allows me to drop items once more. So thanks for that heads-up.
Geez, I hope they get this patched up quick... I really wanna use my own custom key set-up. As I'm sure many others do as well.
