This is perhaps more a real annoyance than a bug and I'm surprised I am the first person I see mention it, anywhere I have seen. There have been other complaints about retrieving arrows and picking up loot (Daily radar's review, among others, appropriately calls it a "pixel hunt"), aside from trying to just walk over it to auto-pickup (another nice feature, though a better one would be a "pick up all loot" button).The good part is, if something is out of your reach and you click on it to pick it up, you automatically walk over and pick it up - great ... unless it it somewhere you can't walk, or if it happens to be not directly in front of you (thus the "dance").
Ok, I grant you there has to be some workable algorithm to figure out how to get from where I am to a point I can pick up said item and it may not always take the most direct route - fine.
But, when I can see this arrow or bag of money (hopefully this won't somehow apply to critical game path items) that seems in reach or inches beyond, I don't want to have the CPU run me in endless circles trying to get it.
I was in Toad village yesterday and fired a slew of arrows into some toad guards in the end of a cavern. The entrance was somehow blocked (apparently by the little trough of plants I could not move), so I could not enter to retrieve my arrows or the weapons, armor, gold, ... that the guards had dropped.
I have heard people talk about jumping in the game (maybe I could have jumped over the trough) but couldn't find how in the manual or on the back, which has the keyboard layout.
Tools for your Wizardry(r) toolkit