Game Mechanics: Inventory / Alchemy bug

[ElanoraBryght]

Before making potions, I cleared as many slots in bags as possible to have room for ingredients.
The last 2 things I cleared were excess Water Flasks / Rations.
I drank my 3 extra Water Flasks.
I ate 3 of my extra Rations.
Purchased Oakmoss and Heliotrope.
Sold my 4th extra Ration.
Purchased a Medicine Bag.
Successfully combined two Potion of the Frost.
On the next attempt to make a potion, received "You cannot combine..." message.
Tried moving items out and back in, then camped and logged back in.
When I logged back in, there was a Water Flask in my top inventory slot in my first bag (the Medicine Bag).

I doubt the 1s for selling the reappearing Water Flask is massively exploitable, but there's something funky going on with inventory.

[ElanoraBryght]

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    [Mon Jan 09 08:26:09 2012] LOADING, PLEASE WAIT...
    [Mon Jan 09 08:26:23 2012] You have entered Halas.
    [Mon Jan 09 08:26:33 2012] Kevon McTarnigal tells you, 'Welcome to my bank!'
    [Mon Jan 09 08:27:53 2012] You take a drink from an Water Flask.
    [Mon Jan 09 08:27:53 2012] Ahhh. That was refreshing.
    [Mon Jan 09 08:27:53 2012] You take a drink from an Water Flask.
    [Mon Jan 09 08:27:53 2012] Ahhh. That was refreshing.
    [Mon Jan 09 08:27:53 2012] You take a drink from an Water Flask.
    [Mon Jan 09 08:27:53 2012] Ahhh. That was refreshing.
    [Mon Jan 09 08:28:15 2012] You take a bite out of a Ration.
    [Mon Jan 09 08:28:15 2012] Ahhh. That was tasty.
    [Mon Jan 09 08:28:15 2012] You take a bite out of a Ration.
    [Mon Jan 09 08:28:15 2012] Ahhh. That was tasty.
    [Mon Jan 09 08:28:15 2012] You take a bite out of a Ration.
    [Mon Jan 09 08:28:15 2012] Ahhh. That was tasty.
    [Mon Jan 09 08:28:16 2012] You could not possibly eat any more, you would explode!
    [Mon Jan 09 08:28:16 2012] You could not possibly eat any more, you would explode!
    [Mon Jan 09 08:28:16 2012] You could not possibly eat any more, you would explode!
    [Mon Jan 09 08:28:25 2012] Your heroism fades.
    [Mon Jan 09 08:28:26 2012] Kevon McTarnigal tells you, 'Come back soon!'
    [Mon Jan 09 08:28:47 2012] You forget Root.
    [Mon Jan 09 08:28:47 2012] Beginning to memorize Unfailing Reverence...
    [Mon Jan 09 08:28:49 2012] You have finished memorizing Unfailing Reverence.
    [Mon Jan 09 08:28:55 2012] You feel as if you are about to fall.
    [Mon Jan 09 08:29:00 2012] You begin casting Unfailing Reverence.
    [Mon Jan 09 08:29:01 2012] You feel as if you are about to fall.
    [Mon Jan 09 08:29:01 2012] You can no longer levitate.
    [Mon Jan 09 08:29:03 2012] Margyn McCann begins to cast a spell.
    [Mon Jan 09 08:29:06 2012] People look at you with unfailing reverence.
    [Mon Jan 09 08:29:09 2012] Spirita says 'Hi there Coldblooded, just browsing?  Have you seen the Mystic Ash I just got in?'
    [Mon Jan 09 08:29:15 2012] Spirita tells you, 'That'll be 135 platinum 4 gold 7 silver 5 copper per Heliotrope.'
    [Mon Jan 09 08:29:20 2012] You give 1083 platinum 8 gold to Spirita.
    [Mon Jan 09 08:29:23 2012] Spirita tells you, 'That'll be 135 platinum 4 gold 7 silver 5 copper per Oakmoss.'
    [Mon Jan 09 08:29:26 2012] You give 1083 platinum 8 gold to Spirita.
    [Mon Jan 09 08:29:31 2012] Jinkus Felligan begins to cast a spell.
    [Mon Jan 09 08:29:38 2012] Shamus Felligan begins to cast a spell.
    [Mon Jan 09 08:29:42 2012] Spirita feels much faster.
    [Mon Jan 09 08:29:42 2012] Spirita says 'Welcome to my shop, Coldblooded.'
    [Mon Jan 09 08:29:44 2012] Spirita tells you, 'I'll give you 2 silver 5 copper per Ration'
    [Mon Jan 09 08:29:45 2012] You receive 2 silver 5 copper from Spirita for the Ration(s).
    [Mon Jan 09 08:29:46 2012] Jinkus Felligan begins to cast a spell.
    [Mon Jan 09 08:29:46 2012] Spirita tells you, 'That'll be 1 platinum 7 copper for the Medicine Bag.'
    [Mon Jan 09 08:29:47 2012] You give 1 platinum 7 copper to Spirita.
    [Mon Jan 09 08:29:54 2012] You can no longer advance your skill from making this item.
    [Mon Jan 09 08:29:54 2012] You have fashioned the items together to create something new!
    [Mon Jan 09 08:29:57 2012] You can no longer advance your skill from making this item.
    [Mon Jan 09 08:29:57 2012] You have fashioned the items together to create something new!
    [Mon Jan 09 08:30:01 2012] You cannot combine these items in this container type!
    [Mon Jan 09 08:30:03 2012] You cannot combine these items in this container type!
    [Mon Jan 09 08:30:04 2012] You cannot combine these items in this container type!
    [Mon Jan 09 08:30:08 2012] Shamus Felligan begins to cast a spell.
    [Mon Jan 09 08:30:11 2012] Shamus Felligan feels much faster.
    [Mon Jan 09 08:30:11 2012] You cannot combine these items in this container type!
    [Mon Jan 09 08:30:12 2012] Jinkus Felligan begins to cast a spell.
    [Mon Jan 09 08:30:20 2012] It will take you about 30 seconds to prepare your camp.
    [Mon Jan 09 08:30:24 2012] It will take about 25 more seconds to prepare your camp.
    [Mon Jan 09 08:30:26 2012] You cannot combine these items in this container type!
    [Mon Jan 09 08:30:29 2012] It will take about 20 more seconds to prepare your camp.
    [Mon Jan 09 08:30:33 2012] Taking a screenshot...