Zombies running through walls, items unlootable

[Keziah 0]

Reference video (12 minutes): http://www.twitch.tv/vantech/b/319679317

Date/Time: 6:30PM PDT 28/5/2012

What happened: Zombies were clipping through walls, running in wide circles, attacking while moving, not taking damage and afterward, were unlootable

Where you were: Stary Sobor barracks on the SE side

What you were doing: Scavenging

*Current installed version: 1.6.0.1

*Server(s) you were on: US14

*Your system specs:

Intel i5-2500K, Gigabyte Z68 mobo, 8GB Corsair XMS3, GTX285

*Timeline of events before/after error:

We approached the town around 6PM and had a brief encounter outside the city, then made our way into the barracks (05:40 in the video). We then got aggro from some zombies and hunkered down in the barracks tents but they were running through walls. This video is taken from Vantech's perspective - from my perspective, zombies were running in circles clipping through the tent walls.

Afterward, Erb and Vantech died and I finished off the zombies but couldn't loot the bodies of the dead (I would click to move an item into my inventory or bag and the item wouldn't move at all.)