OK. Since I last posted, I have found there is some kind of bug with this system. I have pinco's running too.
Go to user settings and set the control/shift to dynamic, 300 (or any other value), hit apply tab and log off the client. When you restart and drop an item from your backpack to the ground, control/shift will pull up the tag for that item. Then walk around a bit (where there are a lot of dynamics) and hit control/shift a few times. Then drop the item from your pack to the ground again, and on control/shift, the tab for that item will not appear, nor will it appear for any other dynamic object such as shoes, fish or anything else you drop on ground.
If you then log out and back on, control/shift will work properly the first time or two you use it.
It looks to me that the 300 you set for max tags displayed is counting up to 300 once. After it gets there it does not reset for the next time you press control/shift. You have to log out to get the limit reset. Now this could be confusing, as there are many semi-permanent items such as gates, lampposts and such in town or around your house that will always show tabs. However the dynamic objects you are really interested in are only pulled up until you hit the 300, 200, 100 limit you set in the user settings. Thereafter they will not pull up until you log out to reset the limit counter.
I am posting this to confirm that everyone sees the same patterns before I submit a bug report. I would really appreciate it if someone would confirm what I have been seeing. Thanks.