diff --git a/apps/openmw/mwbase/mechanicsmanager.hpp b/apps/openmw/mwbase/mechanicsmanager.hpp
index 1de6fdaaf..01b1edff0 100644
--- a/apps/openmw/mwbase/mechanicsmanager.hpp
+++ b/apps/openmw/mwbase/mechanicsmanager.hpp
@@ -150,7 +150,7 @@ namespace MWBase
             /// Utility to check if taking this item is illegal and calling commitCrime if so
             /// @param container The container the item is in; may be empty for an item in the world
             virtual void itemTaken (const MWWorld::Ptr& ptr, const MWWorld::Ptr& item, const MWWorld::Ptr& container,
-                                    int count) = 0;
+                                    int count, bool alarm = true) = 0;
             /// Utility to check if opening (i.e. unlocking) this object is illegal and calling commitCrime if so
             virtual void objectOpened (const MWWorld::Ptr& ptr, const MWWorld::Ptr& item) = 0;
             /// Attempt sleeping in a bed. If this is illegal, call commitCrime.
@@ -248,6 +248,7 @@ namespace MWBase
             /// Has the player stolen this item from the given owner?
             virtual bool isItemStolenFrom(const std::string& itemid, const std::string& ownerid) = 0;
 
+            virtual bool isBoundItem(const MWWorld::Ptr& item) = 0;
             virtual bool isAllowedToUse (const MWWorld::Ptr& ptr, const MWWorld::Ptr& target, MWWorld::Ptr& victim) = 0;
 
             /// Turn actor into werewolf or normal form.
@@ -260,7 +261,6 @@ namespace MWBase
             virtual void cleanupSummonedCreature(const MWWorld::Ptr& caster, int creatureActorId) = 0;
 
             virtual void confiscateStolenItemToOwner(const MWWorld::Ptr &player, const MWWorld::Ptr &item, const MWWorld::Ptr& victim, int count) = 0;
-
             virtual bool isAttackPrepairing(const MWWorld::Ptr& ptr) = 0;
             virtual bool isRunning(const MWWorld::Ptr& ptr) = 0;
             virtual bool isSneaking(const MWWorld::Ptr& ptr) = 0;
diff --git a/apps/openmw/mwgui/container.cpp b/apps/openmw/mwgui/container.cpp
index 085404fcc..8817c0088 100644
--- a/apps/openmw/mwgui/container.cpp
+++ b/apps/openmw/mwgui/container.cpp
@@ -22,12 +22,10 @@
 #include "../mwbase/windowmanager.hpp"
 #include "../mwbase/dialoguemanager.hpp"
 #include "../mwbase/mechanicsmanager.hpp"
-#include "../mwmechanics/actorutil.hpp"
 
 #include "../mwworld/class.hpp"
 #include "../mwworld/inventorystore.hpp"
 
-#include "../mwmechanics/pickpocket.hpp"
 #include "../mwmechanics/creaturestats.hpp"
 
 #include "countdialog.hpp"
@@ -47,7 +45,6 @@ namespace MWGui
     ContainerWindow::ContainerWindow(DragAndDrop* dragAndDrop)
         : WindowBase("openmw_container_window.layout")
         , mDragAndDrop(dragAndDrop)
-        , mPickpocketDetected(false)
         , mSortModel(NULL)
         , mModel(NULL)
         , mSelectedItem(-1)
@@ -69,10 +66,9 @@ namespace MWGui
 
     void ContainerWindow::onItemSelected(int index)
     {
-        if (mDragAndDrop->mIsOnDragAndDrop)
+        if (mDragAndDrop->mIsOnDragAndDrop && mModel)
         {
-            if (mModel && mModel->allowedToInsertItems())
-                dropItem();
+            dropItem();
             return;
         }
 
@@ -151,71 +147,56 @@ namespace MWGui
 
     void ContainerWindow::dropItem()
     {
-        if (mPtr.getTypeName() == typeid(ESM::Container).name())
-        {
-            // check container organic flag
-            MWWorld::LiveCellRef<ESM::Container>* ref = mPtr.get<ESM::Container>();
-            if (ref->mBase->mFlags & ESM::Container::Organic)
-            {
-                MWBase::Environment::get().getWindowManager()->
-                    messageBox("#{sContentsMessage2}");
-                return;
-            }
-
-            // check that we don't exceed container capacity
-            MWWorld::Ptr item = mDragAndDrop->mItem.mBase;
-            float weight = item.getClass().getWeight(item) * mDragAndDrop->mDraggedCount;
-            if (mPtr.getClass().getCapacity(mPtr) < mPtr.getClass().getEncumbrance(mPtr) + weight)
-            {
-                MWBase::Environment::get().getWindowManager()->messageBox("#{sContentsMessage3}");
-                return;
-            }
-        }
+        bool success = mModel->onDropItem(mDragAndDrop->mItem.mBase, mDragAndDrop->mDraggedCount);
 
         /*
             Start of tes3mp addition
 
             Send an ID_CONTAINER packet every time an item is dropped in a container
         */
-        mwmp::WorldEvent *worldEvent = mwmp::Main::get().getNetworking()->getWorldEvent();
-        worldEvent->reset();
-        worldEvent->cell = *mPtr.getCell()->getCell();
-        worldEvent->action = mwmp::BaseEvent::ADD;
+        if (success)
+        {
+            mwmp::WorldEvent *worldEvent = mwmp::Main::get().getNetworking()->getWorldEvent();
+            worldEvent->reset();
+            worldEvent->cell = *mPtr.getCell()->getCell();
+            worldEvent->action = mwmp::BaseEvent::ADD;
 
-        mwmp::WorldObject worldObject;
-        worldObject.refId = mPtr.getCellRef().getRefId();
-        worldObject.refNumIndex = mPtr.getCellRef().getRefNum().mIndex;
-        worldObject.mpNum = mPtr.getCellRef().getMpNum();
+            mwmp::WorldObject worldObject;
+            worldObject.refId = mPtr.getCellRef().getRefId();
+            worldObject.refNumIndex = mPtr.getCellRef().getRefNum().mIndex;
+            worldObject.mpNum = mPtr.getCellRef().getMpNum();
 
-        MWWorld::Ptr itemPtr = mDragAndDrop->mItem.mBase;
+            MWWorld::Ptr itemPtr = mDragAndDrop->mItem.mBase;
 
-        mwmp::ContainerItem containerItem;
-        containerItem.refId = itemPtr.getCellRef().getRefId();
-        
-        // Make sure we get the drag and drop count, not the count of the original item
-        containerItem.count = mDragAndDrop->mDraggedCount;
+            mwmp::ContainerItem containerItem;
+            containerItem.refId = itemPtr.getCellRef().getRefId();
+            
+            // Make sure we get the drag and drop count, not the count of the original item
+            containerItem.count = mDragAndDrop->mDraggedCount;
 
-        containerItem.charge = itemPtr.getCellRef().getCharge();
+            containerItem.charge = itemPtr.getCellRef().getCharge();
 
-        worldObject.containerItems.push_back(containerItem);
-        worldEvent->addObject(worldObject);
+            worldObject.containerItems.push_back(containerItem);
+            worldEvent->addObject(worldObject);
 
-        mwmp::Main::get().getNetworking()->getWorldPacket(ID_CONTAINER)->setEvent(worldEvent);
-        mwmp::Main::get().getNetworking()->getWorldPacket(ID_CONTAINER)->Send();
+            mwmp::Main::get().getNetworking()->getWorldPacket(ID_CONTAINER)->setEvent(worldEvent);
+            mwmp::Main::get().getNetworking()->getWorldPacket(ID_CONTAINER)->Send();
 
-        LOG_MESSAGE_SIMPLE(Log::LOG_INFO, "Sending ID_CONTAINER about\n- Ptr cellRef: %s, %i\n- cell: %s\n- item: %s, %i",
-                           worldObject.refId.c_str(), worldObject.refNumIndex, worldEvent->cell.getDescription().c_str(),
-                           containerItem.refId.c_str(), containerItem.count);
+            LOG_MESSAGE_SIMPLE(Log::LOG_INFO, "Sending ID_CONTAINER about\n- Ptr cellRef: %s, %i\n- cell: %s\n- item: %s, %i",
+                               worldObject.refId.c_str(), worldObject.refNumIndex, worldEvent->cell.getDescription().c_str(),
+                               containerItem.refId.c_str(), containerItem.count);
+        }
         /*
             End of tes3mp addition
         */
 
-        mDragAndDrop->drop(mModel, mItemView);
+        if (success)
+            mDragAndDrop->drop(mModel, mItemView);
     }
 
     void ContainerWindow::onBackgroundSelected()
     {
-        if (mDragAndDrop->mIsOnDragAndDrop && mModel && mModel->allowedToInsertItems())
+        if (mDragAndDrop->mIsOnDragAndDrop && mModel)
             dropItem();
     }
 
@@ -231,7 +212,6 @@ namespace MWGui
             End of tes3mp addition
         */
 
-        mPickpocketDetected = false;
         mPtr = container;
 
         bool loot = mPtr.getClass().isActor() && mPtr.getClass().getCreatureStats(mPtr).isDead();
@@ -241,8 +221,7 @@ namespace MWGui
             if (mPtr.getClass().isNpc() && !loot)
             {
                 // we are stealing stuff
-                MWWorld::Ptr player = MWMechanics::getPlayer();
-                mModel = new PickpocketItemModel(player, new InventoryItemModel(container),
+                mModel = new PickpocketItemModel(mPtr, new InventoryItemModel(container),
                                                  !mPtr.getClass().getCreatureStats(mPtr).getKnockedDown());
             }
             else
@@ -287,24 +266,7 @@ namespace MWGui
 
         WindowBase::onClose();
 
-        if (dynamic_cast<PickpocketItemModel*>(mModel)
-                // Make sure we were actually closed, rather than just temporarily hidden (e.g. console or main menu opened)
-                && !MWBase::Environment::get().getWindowManager()->containsMode(GM_Container)
-                // If it was already detected while taking an item, no need to check now
-                && !mPickpocketDetected
-                )
-        {
-            MWWorld::Ptr player = MWMechanics::getPlayer();
-            MWMechanics::Pickpocket pickpocket(player, mPtr);
-            if (pickpocket.finish())
-            {
-                MWBase::Environment::get().getMechanicsManager()->commitCrime(
-                            player, mPtr, MWBase::MechanicsManager::OT_Pickpocket, 0, true);
-                MWBase::Environment::get().getWindowManager()->removeGuiMode(MWGui::GM_Container);
-                mPickpocketDetected = true;
-                return;
-            }
-        }
+        mModel->onClose();
     }
 
     void ContainerWindow::onCloseButtonClicked(MyGUI::Widget* _sender)
@@ -422,32 +384,7 @@ namespace MWGui
 
     bool ContainerWindow::onTakeItem(const ItemStack &item, int count)
     {
-        MWWorld::Ptr player = MWMechanics::getPlayer();
-        // TODO: move to ItemModels
-        if (dynamic_cast<PickpocketItemModel*>(mModel)
-                && !mPtr.getClass().getCreatureStats(mPtr).getKnockedDown())
-        {
-            MWMechanics::Pickpocket pickpocket(player, mPtr);
-            if (pickpocket.pick(item.mBase, count))
-            {
-                MWBase::Environment::get().getMechanicsManager()->commitCrime(
-                            player, mPtr, MWBase::MechanicsManager::OT_Pickpocket, 0, true);
-                MWBase::Environment::get().getWindowManager()->removeGuiMode(MWGui::GM_Container);
-                mPickpocketDetected = true;
-                return false;
-            }
-            else
-                player.getClass().skillUsageSucceeded(player, ESM::Skill::Sneak, 1);
-        }
-        else
-        {
-            // Looting a dead corpse is considered OK
-            if (mPtr.getClass().isActor() && mPtr.getClass().getCreatureStats(mPtr).isDead())
-                return true;
-            else
-                MWBase::Environment::get().getMechanicsManager()->itemTaken(player, item.mBase, mPtr, count);
-        }
-        return true;
+        return mModel->onTakeItem(item.mBase, count);
     }
 
 }
diff --git a/apps/openmw/mwgui/container.hpp b/apps/openmw/mwgui/container.hpp
index 50c69da3b..cf02d165d 100644
--- a/apps/openmw/mwgui/container.hpp
+++ b/apps/openmw/mwgui/container.hpp
@@ -44,8 +44,6 @@ namespace MWGui
     private:
         DragAndDrop* mDragAndDrop;
 
-        bool mPickpocketDetected;
-
         MWGui::ItemView* mItemView;
         SortFilterItemModel* mSortModel;
         ItemModel* mModel;
diff --git a/apps/openmw/mwgui/containeritemmodel.cpp b/apps/openmw/mwgui/containeritemmodel.cpp
index 9f7a9965c..24e7f8d00 100644
--- a/apps/openmw/mwgui/containeritemmodel.cpp
+++ b/apps/openmw/mwgui/containeritemmodel.cpp
@@ -2,12 +2,16 @@
 
 #include <algorithm>
 
+#include "../mwmechanics/creaturestats.hpp"
+#include "../mwmechanics/actorutil.hpp"
+
 #include "../mwworld/containerstore.hpp"
 #include "../mwworld/class.hpp"
 
-#include "../mwbase/world.hpp"
-#include "../mwbase/mechanicsmanager.hpp"
 #include "../mwbase/environment.hpp"
+#include "../mwbase/mechanicsmanager.hpp"
+#include "../mwbase/windowmanager.hpp"
+#include "../mwbase/world.hpp"
 
 #include "../mwmechanics/actorutil.hpp"
 
@@ -185,5 +189,51 @@ void ContainerItemModel::update()
         }
     }
 }
+bool ContainerItemModel::onDropItem(const MWWorld::Ptr &item, int count)
+{
+    if (mItemSources.empty())
+        return false;
+
+    MWWorld::Ptr target = mItemSources[0];
+
+    if (target.getTypeName() != typeid(ESM::Container).name())
+        return true;
+
+    // check container organic flag
+    MWWorld::LiveCellRef<ESM::Container>* ref = target.get<ESM::Container>();
+    if (ref->mBase->mFlags & ESM::Container::Organic)
+    {
+        MWBase::Environment::get().getWindowManager()->
+            messageBox("#{sContentsMessage2}");
+        return false;
+    }
+
+    // check that we don't exceed container capacity
+    float weight = item.getClass().getWeight(item) * count;
+    if (target.getClass().getCapacity(target) < target.getClass().getEncumbrance(target) + weight)
+    {
+        MWBase::Environment::get().getWindowManager()->messageBox("#{sContentsMessage3}");
+        return false;
+    }
+
+    return true;
+}
+
+bool ContainerItemModel::onTakeItem(const MWWorld::Ptr &item, int count)
+{
+    if (mItemSources.empty())
+        return false;
+
+    MWWorld::Ptr target = mItemSources[0];
+
+    // Looting a dead corpse is considered OK
+    if (target.getClass().isActor() && target.getClass().getCreatureStats(target).isDead())
+        return true;
+
+    MWWorld::Ptr player = MWMechanics::getPlayer();
+    MWBase::Environment::get().getMechanicsManager()->itemTaken(player, item, target, count);
+
+    return true;
+}
 
 }
diff --git a/apps/openmw/mwgui/containeritemmodel.hpp b/apps/openmw/mwgui/containeritemmodel.hpp
index c6ecafd46..e8d1c5328 100644
--- a/apps/openmw/mwgui/containeritemmodel.hpp
+++ b/apps/openmw/mwgui/containeritemmodel.hpp
@@ -18,6 +18,10 @@ namespace MWGui
         ContainerItemModel (const MWWorld::Ptr& source);
 
         virtual bool allowedToUseItems() const;
+
+        virtual bool onDropItem(const MWWorld::Ptr &item, int count);
+        virtual bool onTakeItem(const MWWorld::Ptr &item, int count);
+
         virtual ItemStack getItem (ModelIndex index);
         virtual ModelIndex getIndex (ItemStack item);
         virtual size_t getItemCount();
diff --git a/apps/openmw/mwgui/inventoryitemmodel.cpp b/apps/openmw/mwgui/inventoryitemmodel.cpp
index 222243ec1..c9f55d352 100644
--- a/apps/openmw/mwgui/inventoryitemmodel.cpp
+++ b/apps/openmw/mwgui/inventoryitemmodel.cpp
@@ -9,6 +9,9 @@
 #include "../mwworld/class.hpp"
 #include "../mwworld/inventorystore.hpp"
 
+#include "../mwbase/environment.hpp"
+#include "../mwbase/mechanicsmanager.hpp"
+
 namespace MWGui
 {
 
@@ -116,4 +119,16 @@ void InventoryItemModel::update()
     }
 }
 
+bool InventoryItemModel::onTakeItem(const MWWorld::Ptr &item, int count)
+{
+    // Looting a dead corpse is considered OK
+    if (mActor.getClass().isActor() && mActor.getClass().getCreatureStats(mActor).isDead())
+        return true;
+
+    MWWorld::Ptr player = MWMechanics::getPlayer();
+    MWBase::Environment::get().getMechanicsManager()->itemTaken(player, item, mActor, count);
+
+    return true;
+}
+
 }
diff --git a/apps/openmw/mwgui/inventoryitemmodel.hpp b/apps/openmw/mwgui/inventoryitemmodel.hpp
index f58ee2939..38730bd4d 100644
--- a/apps/openmw/mwgui/inventoryitemmodel.hpp
+++ b/apps/openmw/mwgui/inventoryitemmodel.hpp
@@ -15,6 +15,8 @@ namespace MWGui
         virtual ModelIndex getIndex (ItemStack item);
         virtual size_t getItemCount();
 
+        virtual bool onTakeItem(const MWWorld::Ptr &item, int count);
+
         virtual MWWorld::Ptr copyItem (const ItemStack& item, size_t count, bool setNewOwner=false);
         virtual void removeItem (const ItemStack& item, size_t count);
 
diff --git a/apps/openmw/mwgui/itemmodel.cpp b/apps/openmw/mwgui/itemmodel.cpp
index ffcf9075e..e3f38a54c 100644
--- a/apps/openmw/mwgui/itemmodel.cpp
+++ b/apps/openmw/mwgui/itemmodel.cpp
@@ -9,6 +9,7 @@
 
 #include "../mwbase/world.hpp"
 #include "../mwbase/environment.hpp"
+#include "../mwbase/mechanicsmanager.hpp"
 
 namespace MWGui
 {
@@ -23,38 +24,7 @@ namespace MWGui
         if (base.getClass().getEnchantment(base) != "")
             mFlags |= Flag_Enchanted;
 
-        static std::set<std::string> boundItemIDCache;
-
-        // If this is empty then we haven't executed the GMST cache logic yet; or there isn't any sMagicBound* GMST's for some reason
-        if (boundItemIDCache.empty())
-        {
-            // Build a list of known bound item ID's
-            const MWWorld::Store<ESM::GameSetting> &gameSettings = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>();
-
-            for (MWWorld::Store<ESM::GameSetting>::iterator currentIteration = gameSettings.begin(); currentIteration != gameSettings.end(); ++currentIteration)
-            {
-                const ESM::GameSetting &currentSetting = *currentIteration;
-                std::string currentGMSTID = currentSetting.mId;
-                Misc::StringUtils::lowerCaseInPlace(currentGMSTID);
-
-                // Don't bother checking this GMST if it's not a sMagicBound* one.
-                const std::string& toFind = "smagicbound";
-                if (currentGMSTID.compare(0, toFind.length(), toFind) != 0)
-                    continue;
-
-                // All sMagicBound* GMST's should be of type string
-                std::string currentGMSTValue = currentSetting.getString();
-                Misc::StringUtils::lowerCaseInPlace(currentGMSTValue);
-
-                boundItemIDCache.insert(currentGMSTValue);
-            }
-        }
-
-        // Perform bound item check and assign the Flag_Bound bit if it passes
-        std::string tempItemID = base.getCellRef().getRefId();
-        Misc::StringUtils::lowerCaseInPlace(tempItemID);
-
-        if (boundItemIDCache.count(tempItemID) != 0)
+        if (MWBase::Environment::get().getMechanicsManager()->isBoundItem(base))
             mFlags |= Flag_Bound;
     }
 
@@ -124,7 +94,12 @@ namespace MWGui
         return true;
     }
 
-    bool ItemModel::allowedToInsertItems() const
+    bool ItemModel::onDropItem(const MWWorld::Ptr &item, int count)
+    {
+        return true;
+    }
+
+    bool ItemModel::onTakeItem(const MWWorld::Ptr &item, int count)
     {
         return true;
     }
@@ -198,4 +173,18 @@ namespace MWGui
         mSourceModel = sourceModel;
     }
 
+    void ProxyItemModel::onClose()
+    {
+        mSourceModel->onClose();
+    }
+
+    bool ProxyItemModel::onDropItem(const MWWorld::Ptr &item, int count)
+    {
+        return mSourceModel->onDropItem(item, count);
+    }
+
+    bool ProxyItemModel::onTakeItem(const MWWorld::Ptr &item, int count)
+    {
+        return mSourceModel->onTakeItem(item, count);
+    }
 }
diff --git a/apps/openmw/mwgui/itemmodel.hpp b/apps/openmw/mwgui/itemmodel.hpp
index bc6be8023..e8e348a8a 100644
--- a/apps/openmw/mwgui/itemmodel.hpp
+++ b/apps/openmw/mwgui/itemmodel.hpp
@@ -72,9 +72,11 @@ namespace MWGui
 
         /// Is the player allowed to use items from this item model? (default true)
         virtual bool allowedToUseItems() const;
-
-        /// Is the player allowed to insert items into this model? (default true)
-        virtual bool allowedToInsertItems() const;
+        virtual void onClose()
+        {
+        }
+        virtual bool onDropItem(const MWWorld::Ptr &item, int count);
+        virtual bool onTakeItem(const MWWorld::Ptr &item, int count);
 
     private:
         ItemModel(const ItemModel&);
@@ -91,6 +93,10 @@ namespace MWGui
 
         bool allowedToUseItems() const;
 
+        virtual void onClose();
+        virtual bool onDropItem(const MWWorld::Ptr &item, int count);
+        virtual bool onTakeItem(const MWWorld::Ptr &item, int count);
+
         virtual MWWorld::Ptr copyItem (const ItemStack& item, size_t count, bool setNewOwner=false);
         virtual void removeItem (const ItemStack& item, size_t count);
         virtual ModelIndex getIndex (ItemStack item);
diff --git a/apps/openmw/mwgui/pickpocketitemmodel.cpp b/apps/openmw/mwgui/pickpocketitemmodel.cpp
index ec4b378a0..e85715e87 100644
--- a/apps/openmw/mwgui/pickpocketitemmodel.cpp
+++ b/apps/openmw/mwgui/pickpocketitemmodel.cpp
@@ -3,15 +3,26 @@
 #include <components/misc/rng.hpp>
 #include <components/esm/loadskil.hpp>
 
+#include "../mwmechanics/actorutil.hpp"
+#include "../mwmechanics/creaturestats.hpp"
+#include "../mwmechanics/pickpocket.hpp"
+
+#include "../mwworld/containerstore.hpp"
 #include "../mwworld/class.hpp"
 
+#include "../mwbase/environment.hpp"
+#include "../mwbase/mechanicsmanager.hpp"
+#include "../mwbase/windowmanager.hpp"
+
 namespace MWGui
 {
 
-    PickpocketItemModel::PickpocketItemModel(const MWWorld::Ptr& thief, ItemModel *sourceModel, bool hideItems)
+    PickpocketItemModel::PickpocketItemModel(const MWWorld::Ptr& actor, ItemModel *sourceModel, bool hideItems)
+        : mActor(actor), mPickpocketDetected(false)
     {
+        MWWorld::Ptr player = MWMechanics::getPlayer();
         mSourceModel = sourceModel;
-        int chance = thief.getClass().getSkill(thief, ESM::Skill::Sneak);
+        int chance = player.getClass().getSkill(player, ESM::Skill::Sneak);
 
         mSourceModel->update();
 
@@ -66,13 +77,63 @@ namespace MWGui
     void PickpocketItemModel::removeItem (const ItemStack &item, size_t count)
     {
         ProxyItemModel::removeItem(item, count);
-        /// \todo check if player is detected
     }
 
-    bool PickpocketItemModel::allowedToInsertItems() const
+    bool PickpocketItemModel::onDropItem(const MWWorld::Ptr &item, int count)
     {
-        // don't allow "reverse pickpocket" (yet)
+        // don't allow "reverse pickpocket" (it will be handled by scripts after 1.0)
         return false;
     }
 
+    void PickpocketItemModel::onClose()
+    {
+        // Make sure we were actually closed, rather than just temporarily hidden (e.g. console or main menu opened)
+        if (MWBase::Environment::get().getWindowManager()->containsMode(GM_Container)
+        // If it was already detected while taking an item, no need to check now
+                || mPickpocketDetected)
+            return;
+
+        MWWorld::Ptr player = MWMechanics::getPlayer();
+        MWMechanics::Pickpocket pickpocket(player, mActor);
+        if (pickpocket.finish())
+        {
+            MWBase::Environment::get().getMechanicsManager()->commitCrime(
+                        player, mActor, MWBase::MechanicsManager::OT_Pickpocket, 0, true);
+            MWBase::Environment::get().getWindowManager()->removeGuiMode(MWGui::GM_Container);
+            mPickpocketDetected = true;
+        }
+    }
+
+    bool PickpocketItemModel::onTakeItem(const MWWorld::Ptr &item, int count)
+    {
+        if (mActor.getClass().getCreatureStats(mActor).getKnockedDown())
+            return mSourceModel->onTakeItem(item, count);
+
+        bool success = stealItem(item, count);
+        if (success)
+        {
+            MWWorld::Ptr player = MWMechanics::getPlayer();
+            MWBase::Environment::get().getMechanicsManager()->itemTaken(player, item, mActor, count, false);
+        }
+
+        return success;
+    }
+
+    bool PickpocketItemModel::stealItem(const MWWorld::Ptr &item, int count)
+    {
+        MWWorld::Ptr player = MWMechanics::getPlayer();
+        MWMechanics::Pickpocket pickpocket(player, mActor);
+        if (pickpocket.pick(item, count))
+        {
+            MWBase::Environment::get().getMechanicsManager()->commitCrime(
+                        player, mActor, MWBase::MechanicsManager::OT_Pickpocket, 0, true);
+            MWBase::Environment::get().getWindowManager()->removeGuiMode(MWGui::GM_Container);
+            mPickpocketDetected = true;
+            return false;
+        }
+        else
+            player.getClass().skillUsageSucceeded(player, ESM::Skill::Sneak, 1);
+
+        return true;
+    }
 }
diff --git a/apps/openmw/mwgui/pickpocketitemmodel.hpp b/apps/openmw/mwgui/pickpocketitemmodel.hpp
index 1b08ec485..83caf2ffd 100644
--- a/apps/openmw/mwgui/pickpocketitemmodel.hpp
+++ b/apps/openmw/mwgui/pickpocketitemmodel.hpp
@@ -17,7 +17,14 @@ namespace MWGui
         virtual size_t getItemCount();
         virtual void update();
         virtual void removeItem (const ItemStack& item, size_t count);
-        virtual bool allowedToInsertItems() const;
+        virtual void onClose();
+        virtual bool onDropItem(const MWWorld::Ptr &item, int count);
+        virtual bool onTakeItem(const MWWorld::Ptr &item, int count);
+
+    protected:
+        MWWorld::Ptr mActor;
+        bool mPickpocketDetected;
+        bool stealItem(const MWWorld::Ptr &item, int count);
 
     private:
         std::vector<ItemStack> mHiddenItems;
diff --git a/apps/openmw/mwgui/sortfilteritemmodel.cpp b/apps/openmw/mwgui/sortfilteritemmodel.cpp
index e294ebe07..1ee3cf631 100644
--- a/apps/openmw/mwgui/sortfilteritemmodel.cpp
+++ b/apps/openmw/mwgui/sortfilteritemmodel.cpp
@@ -311,4 +311,18 @@ namespace MWGui
         std::sort(mItems.begin(), mItems.end(), cmp);
     }
 
+    void SortFilterItemModel::onClose()
+    {
+        mSourceModel->onClose();
+    }
+
+    bool SortFilterItemModel::onDropItem(const MWWorld::Ptr &item, int count)
+    {
+        return mSourceModel->onDropItem(item, count);
+    }
+
+    bool SortFilterItemModel::onTakeItem(const MWWorld::Ptr &item, int count)
+    {
+        return mSourceModel->onTakeItem(item, count);
+    }
 }
diff --git a/apps/openmw/mwgui/sortfilteritemmodel.hpp b/apps/openmw/mwgui/sortfilteritemmodel.hpp
index 6ddb019b0..98da8d8c9 100644
--- a/apps/openmw/mwgui/sortfilteritemmodel.hpp
+++ b/apps/openmw/mwgui/sortfilteritemmodel.hpp
@@ -29,6 +29,10 @@ namespace MWGui
         /// Use ItemStack::Type for sorting?
         void setSortByType(bool sort) { mSortByType = sort; }
 
+        void onClose();
+        bool onDropItem(const MWWorld::Ptr &item, int count);
+        bool onTakeItem(const MWWorld::Ptr &item, int count);
+
         static const int Category_Weapon = (1<<1);
         static const int Category_Apparel = (1<<2);
         static const int Category_Misc = (1<<3);
diff --git a/apps/openmw/mwmechanics/actors.cpp b/apps/openmw/mwmechanics/actors.cpp
index 4247a052f..7bce03bfe 100644
--- a/apps/openmw/mwmechanics/actors.cpp
+++ b/apps/openmw/mwmechanics/actors.cpp
@@ -1381,8 +1381,13 @@ namespace MWMechanics
                             float sqrHeadTrackDistance = std::numeric_limits<float>::max();
                             MWWorld::Ptr headTrackTarget;
 
+                            MWMechanics::CreatureStats& stats = iter->first.getClass().getCreatureStats(iter->first);
+
                             // Unconsious actor can not track target
-                            if (!iter->first.getClass().getCreatureStats(iter->first).getKnockedDown())
+                            // Also actors in combat and pursue mode do not bother to headtrack
+                            if (!stats.getKnockedDown() &&
+                                !stats.getAiSequence().isInCombat() &&
+                                !stats.getAiSequence().hasPackage(AiPackage::TypeIdPursue))
                             {
                                 for(PtrActorMap::iterator it(mActors.begin()); it != mActors.end(); ++it)
                                 {
@@ -1390,8 +1395,9 @@ namespace MWMechanics
                                         continue;
                                     updateHeadTracking(iter->first, it->first, headTrackTarget, sqrHeadTrackDistance);
                                 }
-                                iter->second->getCharacterController()->setHeadTrackTarget(headTrackTarget);
                             }
+
+                            iter->second->getCharacterController()->setHeadTrackTarget(headTrackTarget);
                         }
 
                         if (iter->first.getClass().isNpc() && iter->first != player && (isLocalActor || isAIActive))
diff --git a/apps/openmw/mwmechanics/aicombat.cpp b/apps/openmw/mwmechanics/aicombat.cpp
index 1d761ae6b..352ce6a9b 100644
--- a/apps/openmw/mwmechanics/aicombat.cpp
+++ b/apps/openmw/mwmechanics/aicombat.cpp
@@ -558,6 +558,22 @@ namespace MWMechanics
 
     void AiCombatStorage::startCombatMove(bool isDistantCombat, float distToTarget, float rangeAttack, const MWWorld::Ptr& actor, const MWWorld::Ptr& target)
     {
+        // get the range of the target's weapon
+        MWWorld::Ptr targetWeapon = MWWorld::Ptr();
+        const MWWorld::Class& targetClass = target.getClass();
+
+        if (targetClass.hasInventoryStore(target))
+        {
+            MWMechanics::WeaponType weapType = WeapType_None;
+            MWWorld::ContainerStoreIterator weaponSlot =
+                MWMechanics::getActiveWeapon(targetClass.getCreatureStats(target), targetClass.getInventoryStore(target), &weapType);
+            if (weapType != WeapType_PickProbe && weapType != WeapType_Spell && weapType != WeapType_None && weapType != WeapType_HandToHand)
+                targetWeapon = *weaponSlot;
+        }
+
+        bool targetUsesRanged = false;
+        float rangeAttackOfTarget = ActionWeapon(targetWeapon).getCombatRange(targetUsesRanged);
+        
         if (mMovement.mPosition[0] || mMovement.mPosition[1])
         {
             mTimerCombatMove = 0.1f + 0.1f * Misc::Rng::rollClosedProbability();
@@ -566,28 +582,6 @@ namespace MWMechanics
         // dodge movements (for NPCs and bipedal creatures)
         else if (actor.getClass().isBipedal(actor))
         {
-            // get the range of the target's weapon
-            float rangeAttackOfTarget = 0.f;
-            MWWorld::Ptr targetWeapon = MWWorld::Ptr();
-            const MWWorld::Class& targetClass = target.getClass();
-
-            if (targetClass.hasInventoryStore(target))
-            {
-                MWMechanics::WeaponType weapType = WeapType_None;
-                MWWorld::ContainerStoreIterator weaponSlot =
-                    MWMechanics::getActiveWeapon(targetClass.getCreatureStats(target), targetClass.getInventoryStore(target), &weapType);
-                if (weapType != WeapType_PickProbe && weapType != WeapType_Spell && weapType != WeapType_None && weapType != WeapType_HandToHand)
-                    targetWeapon = *weaponSlot;
-            }
-
-            std::shared_ptr<Action> targetWeaponAction (new ActionWeapon(targetWeapon));
-
-            if (targetWeaponAction.get())
-            {
-                bool isRangedCombat = false;
-                rangeAttackOfTarget = targetWeaponAction->getCombatRange(isRangedCombat);
-            }
-              
             // apply sideway movement (kind of dodging) with some probability
             // if actor is within range of target's weapon
             if (distToTarget <= rangeAttackOfTarget && Misc::Rng::rollClosedProbability() < 0.25)
@@ -598,16 +592,18 @@ namespace MWMechanics
             }
         }
 
-        // Below behavior for backing up during ranged combat differs from vanilla.
-        // Vanilla is observed as backing up only as far as fCombatDistance or
-        // opponent's weapon range, or not backing up if opponent is also using a ranged weapon
-        if (isDistantCombat && distToTarget < rangeAttack / 4)
+        // Backing up behaviour
+        // Actor backs up slightly further away than opponent's weapon range
+        // (in vanilla - only as far as oponent's weapon range),
+        // or not at all if opponent is using a ranged weapon
+        if (isDistantCombat)
         {
             // actor should not back up into water
             if (MWBase::Environment::get().getWorld()->isUnderwater(MWWorld::ConstPtr(actor), 0.5f))
                 return;
 
-            mMovement.mPosition[1] = -1;
+            if (!targetUsesRanged && distToTarget <= rangeAttackOfTarget*1.5) // Don't back up if the target is wielding ranged weapon
+                mMovement.mPosition[1] = -1;
         }
     }
 
diff --git a/apps/openmw/mwmechanics/aicombataction.cpp b/apps/openmw/mwmechanics/aicombataction.cpp
index d44498966..df636dd56 100644
--- a/apps/openmw/mwmechanics/aicombataction.cpp
+++ b/apps/openmw/mwmechanics/aicombataction.cpp
@@ -115,6 +115,7 @@ namespace MWMechanics
         isRanged = false;
 
         static const float fCombatDistance = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("fCombatDistance")->getFloat();
+        static const float fProjectileMaxSpeed = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>().find("fProjectileMaxSpeed")->getFloat();
 
         if (mWeapon.isEmpty())
         {
@@ -128,7 +129,7 @@ namespace MWMechanics
         if (weapon->mData.mType >= ESM::Weapon::MarksmanBow)
         {
             isRanged = true;
-            return 1000.f;
+            return fProjectileMaxSpeed;
         }
         else
             return weapon->mData.mReach * fCombatDistance;
diff --git a/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp b/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
index a361f5c93..021444915 100644
--- a/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
+++ b/apps/openmw/mwmechanics/mechanicsmanagerimp.cpp
@@ -866,6 +866,45 @@ namespace MWMechanics
         mAI = true;
     }
 
+    bool MechanicsManager::isBoundItem(const MWWorld::Ptr& item)
+    {
+        static std::set<std::string> boundItemIDCache;
+
+        // If this is empty then we haven't executed the GMST cache logic yet; or there isn't any sMagicBound* GMST's for some reason
+        if (boundItemIDCache.empty())
+        {
+            // Build a list of known bound item ID's
+            const MWWorld::Store<ESM::GameSetting> &gameSettings = MWBase::Environment::get().getWorld()->getStore().get<ESM::GameSetting>();
+
+            for (MWWorld::Store<ESM::GameSetting>::iterator currentIteration = gameSettings.begin(); currentIteration != gameSettings.end(); ++currentIteration)
+            {
+                const ESM::GameSetting &currentSetting = *currentIteration;
+                std::string currentGMSTID = currentSetting.mId;
+                Misc::StringUtils::lowerCaseInPlace(currentGMSTID);
+
+                // Don't bother checking this GMST if it's not a sMagicBound* one.
+                const std::string& toFind = "smagicbound";
+                if (currentGMSTID.compare(0, toFind.length(), toFind) != 0)
+                    continue;
+
+                // All sMagicBound* GMST's should be of type string
+                std::string currentGMSTValue = currentSetting.getString();
+                Misc::StringUtils::lowerCaseInPlace(currentGMSTValue);
+
+                boundItemIDCache.insert(currentGMSTValue);
+            }
+        }
+
+        // Perform bound item check and assign the Flag_Bound bit if it passes
+        std::string tempItemID = item.getCellRef().getRefId();
+        Misc::StringUtils::lowerCaseInPlace(tempItemID);
+
+        if (boundItemIDCache.count(tempItemID) != 0)
+            return true;
+
+        return false;
+    }
+
     bool MechanicsManager::isAllowedToUse (const MWWorld::Ptr& ptr, const MWWorld::Ptr& target, MWWorld::Ptr& victim)
     {
         if (target.isEmpty())
@@ -1050,7 +1089,7 @@ namespace MWMechanics
     }
 
     void MechanicsManager::itemTaken(const MWWorld::Ptr &ptr, const MWWorld::Ptr &item, const MWWorld::Ptr& container,
-                                     int count)
+                                     int count, bool alarm)
     {
         if (ptr != getPlayer())
             return;
@@ -1079,19 +1118,29 @@ namespace MWMechanics
             return;
 
         Owner owner;
-        owner.first = ownerCellRef->getOwner();
         owner.second = false;
-        if (owner.first.empty())
+        if (!container.isEmpty() && container.getClass().isActor())
         {
-            owner.first = ownerCellRef->getFaction();
-            owner.second = true;
+            // "container" is an actor inventory, so just take actor's ID
+            owner.first = ownerCellRef->getRefId();
         }
+        else
+        {
+            owner.first = ownerCellRef->getOwner();
+            if (owner.first.empty())
+            {
+                owner.first = ownerCellRef->getFaction();
+                owner.second = true;
+            }
+        }
+
         Misc::StringUtils::lowerCaseInPlace(owner.first);
 
         if (!Misc::StringUtils::ciEqual(item.getCellRef().getRefId(), MWWorld::ContainerStore::sGoldId))
             mStolenItems[Misc::StringUtils::lowerCase(item.getCellRef().getRefId())][owner] += count;
 
-        commitCrime(ptr, victim, OT_Theft, item.getClass().getValue(item) * count);
+        if (alarm)
+            commitCrime(ptr, victim, OT_Theft, item.getClass().getValue(item) * count);
     }
 
 
diff --git a/apps/openmw/mwmechanics/mechanicsmanagerimp.hpp b/apps/openmw/mwmechanics/mechanicsmanagerimp.hpp
index 25c2dae3d..fafcdcd28 100644
--- a/apps/openmw/mwmechanics/mechanicsmanagerimp.hpp
+++ b/apps/openmw/mwmechanics/mechanicsmanagerimp.hpp
@@ -145,7 +145,7 @@ namespace MWMechanics
             /// Utility to check if taking this item is illegal and calling commitCrime if so
             /// @param container The container the item is in; may be empty for an item in the world
             virtual void itemTaken (const MWWorld::Ptr& ptr, const MWWorld::Ptr& item, const MWWorld::Ptr& container,
-                                    int count);
+                                    int count, bool alarm = true);
             /// Utility to check if opening (i.e. unlocking) this object is illegal and calling commitCrime if so
             virtual void objectOpened (const MWWorld::Ptr& ptr, const MWWorld::Ptr& item);
             /// Attempt sleeping in a bed. If this is illegal, call commitCrime.
@@ -214,6 +214,8 @@ namespace MWMechanics
             /// Has the player stolen this item from the given owner?
             virtual bool isItemStolenFrom(const std::string& itemid, const std::string& ownerid);
 
+            virtual bool isBoundItem(const MWWorld::Ptr& item);
+
             /// @return is \a ptr allowed to take/use \a target or is it a crime?
             virtual bool isAllowedToUse (const MWWorld::Ptr& ptr, const MWWorld::Ptr& target, MWWorld::Ptr& victim);