Some items in water cannot be picked up until you are submerged in water

[LquiD]

Title: Some items in water cannot be picked up until you are submerged in water

Version: 3.0.3/3.0.4

OS: Client(Win7 Pro x64), Server(Centos 6.1, Kernel 2.6.x)

Java Version: Oracle JRE 1.7u4 for Linux x64

Description of Problem:

If you break a block that is submerged in water, fill that space with a glass type block and wait for the server to update the broken blocks' item position to be above the new glass block to collect it, you cannot pickup the item/block you just broke until you are completely submerged in water.

I have made a video of the behavior here:

The Video ends around 1:45

Error Messages:

Error Log: