Hellsing,
you can find out more about groups and group loot here: http://dragoneternity.com/about/party/
Indeed, you can not assign an item, that was obtained before the player has joined the group. Players can receive only those items, which were received after after the player has joined the group. This is not a bug, therefore will not be "fixed" :)

ummm..
Scenario:
I and you have teamed up! We got a group drop of 100 sparks! (yay) - but I dont distribute them
Now we invite Irish! We 3 hunt and get 100 more sparks (yay)

Now I decide to distribute them - taking 80 for myself (yes yes) - 60 for u and 60 for irish!
But I cant give it to Irish - since it doesn't allow me to!

Moral:
Irish was in the group when we received the 2nd set of 100 sparks! but not when we got the first 100 :( just because I didn't distribute the first set before Irish joined - the issue is there :P

Hellsing,
this is not a bug, this loot distribution scheme has been chosen to ensure fair gameplay for everyone. If you have any suggestions on how to make our game better, feel free to share them on our Forum, in the "Suggestions" thread: http://dragoneternity.com/forum/suggestions/

umm! so if irish doesnt get anything(in the above scenario) - its fairplay for everyone in that case?

because she worked for the monster along with me and u - and got the 2nd set of 100 sparks :( :(

Hellsing,
yes, it is a fair play in our opinion :) uf you have alternative loot distribution schemes, you are more than welcome to suggest them on our forum: http://dragoneternity.com/forum/suggestions/