I've tried your demo template, and it's very good demo.
but when the player wear the armor and he walk or run, the armor is a few step behind ( not suit in the body well ) why?. And the player can swing the sword only when he near the enemy (too near to even swing his sword), can it make he can swing the sword everytime he wants? and when he drops the few item in the same place it will drop exactly in the same place (I mean if you drop 10 sword at the same place it will look only one sword at the place), can it make drop randomly around the player?
that's enough for now,
the rest is great, and very usable code!
KEEP UP THE GREAT WORK!!!!