When one of your item slots is empty and you get a new item it goes there instead of your menu, that's probably what happened with the bow.
As for grabbing, I hadn't gotten around to actually programming it into the engine yet. It's so that you can pull on things, for now I have it so you should be able to do it to pretty much anything solid that doesn't have another action associated with it, though you won't be able to move most things at all.
Yeah, keep me informed if you find anything else odd, glad you're enjoying the demo.
Behold, my broken image!