F2P cannot loot items in game.
 

I have set up a local server on my machine to play around with.

I am using the EQEmuLoginServer binary.

I have two issues, is this my issue or is there an update coming for this:

I cannot loot anything, and looting crashes my inventory it seems.
From then on I cannot select npcs.

When I first log into the world with my character I get:
[04.23. - 02:32:25] [WORLD__CLIENT] Admin: Client disconnected (not active in process)

When I fight and gain level it is adding it to the database, so I must not be disconnected. Is this a problem and possibly the issue to the looting problem?

Does the title mean you are using the current f2p client? It's not 100% supported, so using it is at your own risk.