In the few times that's happened to me, it has seemed that it first drops the
oldest stuff you've had carried, then the newest stuff. I guess if I decided
to steal some idler's eq, I could cast some weight-limit-increasing spell at
them (lift of load, warez, or that druid +str spell), give the player a bunch
of stuff (maybe some logs), then wait for the spell to wear off. I'd then be
able to just pick the gear off the ground. Hmm, who needs thieves anyways?