Items disappearing

All item drops are disappearing after a few seconds of dropping. I have to hurry to pick up gear and such or it vanishes after 2 seconds. This happens with mob and boss drops as well as items from a chest. I have no time to figure out if I want a piece or not, so I have to pick up all gear quickly. Also, if I drop an item, it falls through the floor and I can't pick it back up. I lost a pretty good quiver this way. Super frustrating. Almost not worth continuing until this is resolved. Please Help!