About half way through the game and all of a sudden I can't get my characters to pick anything up. BG1 with easy tatu. Problem seems the same in all reloaded saved games as well. The pick up icon appears, I click, character approaches items but that's it. None of the rest of the pick up works. Anybody any ideas or help? Thanks in advance.

Probably not the reason, but the first thing that pops to mind is make sure your inventory isn't full.

Yeah my inventory is not full. The pop up boxes don't appear. Sometimes if I stand on an item it will appear on the 'ground' part of the inventory screen. But the 'pick up' box does not appear.

I encountered that bug as well once in one of my BGTutu campaigns. I could only resolve it, by returning to a previous save made in another area i was in earlier, another than the area were the bug happened - have you tried earlier save-games as well?

2 things that I know of can do this:

1) You installed a patch after you installed the mod.
2) Sometimes Win Vista/7 can have issues if you install the game to the default location. You could copy your saved games and then try reinstalling to a different directory (like c:\BG\).

The problem with #1 is that script triggers can be messed up (from my understanding, anyway).

The problem with #2 is that Windows prevents the game from executing a script. (again, from my meager understanding)