Dropped Items do not fly towards players when picked up

When an item or stack of items is dropped on the ground, and a player moves within the 1 block distance to pick up said items, they do not 'fly' towards the player as if being sucked in by them. Instead they just dissapear from the world.

Video link showing this: http://youtu.be/ZXZ-DOongkQ

(Crash Report attached to show version information, and environment)