Well I found this neat little bug during beta

if you get killed by a mob and drop one of your items, "alt"+"Tab" out of the game and disconnect your net before you hit the button "go to nearest village" then bring up task manager and close the game. Then re-conect to game as usawel afetr this is done and you should see you charecter fall back to the ground as if he/she was just killd with item in Inventory this time
This bug works on the same concept as the cheating the death penety one

one note though is noones ever picked up the Items after I had droped them and used this sploit, so eathr it won't work if someone picks it up OR you may be able to dupe items this way, I would have to test further to find this out though... Hope this is worthy material for you