Perenthia Release 1.0.10 is now live and includes the following bug fixes:

Equipping items is failing when an item is already equipped. The underlying problem has been corrected, if anyone still experiences this issue will need to perform a data fix on your character.
The dropped items issue when clicking on the "X" should be corrected now.
Buff spells should not buff mobiles so if you have a mobile targeted the spell will be cast on you.
Cleared up a drag and drop issue with equipping items, when you equip and item the new icon should replace the old one in the equipped spot and likewise your old item should show up in your inventory.
You should now loose more experience upon death after level 5.

The next release will include more bug fixes and some new features.

Some outstanding issues still waiting to be fixed:

Priest healing and refresh quantity does not work
Moving in an invalid direction causes the room panel to clear (causing un-looted mobs to disappear)
Inventory does not maintain item positions and re-orders when buying and selling at merchants
Not all skills are valid for play
Mobiles need some form of AI, to wonder around, re-act to changes, allow interaction, etc.
Need ability to train skills and repair items