Same thing happens to me in the Solitude house. Playing on PS3 and that's one of the things I hope gets fixed.
Well it happens in every house and I think the reason is that depending on which weapons you put on the racks, the ones to it's left or right become unusable because the weapon you put on the rack prior blocks the active area to where you can place a weapon on it. I had this problem in Honeyside, but rearranging my weapons ending up fixing the problem. It isn't so much of a bug as it is lack of accuracy of the targeting I think.
The fix to the mannequin is this: Put all your armor on it, and then a random ring. Back out, and it'll all be invisable. Go back into its menu and take the ring off, and your armor should appear on it.
Discovered this on accident, but even then it is only temporary. This is the #2 bug that I have wanted fixed since I discovered it, second only to the bug involving "Blood on the Ice," which drove me to near insanity restarting the same character 2 times before I got the quest to even activate. Plus, I roleplay, and just strutting into Windhelm after the tutorial doesn't make sense to me just to check if the quest will activate.
However, I discovered that if you go into Windhelm, ask Lonely-Gale about the murders, then leave (not immediately if you don't want to) and come back at least three days later, then the body will be discovered in the cemetery. I am assuming it is three in-game days due to what the wiki says, but I actually stayed out several weeks after first entering and leaving