I am also having this same problem:
Weight far below max weight, can\'t pickup item (in this case Iron ore). I can workaround to pickup one more item by casting life infusion on myself or logging off and logging back on (haven\'t tried eating).
Also, if I cast life infusion on some other character who is having the same problem (they can\'t pick up an item they should be able to) they can now pick it up.
*edit*
Update: The life infusion trick doesn\'t work if the spell fails, it has to succeed, even though I am already at 100% health so it doesn\'t add any health.
Please avoid posting two or more successive posts before others have replied. Just edit your last post to add new information :) Thanks! --Karyuu