Do you have on the 'Can Add Furniture, Move Furniture, And Take Furniture In Other Villagers' Houses And While Other Villagers Are In Your House' code? That's the only one I know of that won't let you drop any items on the ground. Although if I remember correctly the RTWE should work okay with that since you're not technically dropping items traditionally..

Try checking the map editor in actoolkit and see to see what's on the ground.