Just like it says;

I drop an item so I can place it in a display case, hold down E so as not to pick up the item but when I move the view up the item will not come off the floor. Moving around will drag it but if it hits an object it will not 'Climb'

Suggestions please!

what exactly are you trying to pick up?

Doesn't matter, anything I try to place does the same thing, I can't get it off the floor.