if you unequip a valuable item, like four winds sandals or something, you lose them. i know because i decided to change all the items i had equipped just to check it out, and i lost all my good stuff. they hadnt been dropped on the ground and they were gone from the inventory.
this was SO ANNOYING cos i did this in omashu just after finding a 5th hard leather strip (dropped by a bandit). when i saw my cool items were gone, i loaded from my last save point and havent been able to find a 5th hard leather for more than 2 hours. noone will craft them, im convinced this is a bug also.

its a sad day for me i was getting 100% in each level now im considering giving up..

has anyone seen any other bugs?

yes actually. i have finished the game (within less than a week) and after i finish the last battle, something strange happens.

WARNING! if you don't want to know what happens after the end of the game, DO NOT scroll down, otherwise scroll down and i will tell you:













well, after the las battke, Aang and co are in a small corridor. at one end is the door to the last battle. at the other end is a giant stone wall that only the stone boy can try to open. after you succeed the minigame test thigy, he just says: "my power is not high enough". in other words, once you finish the last battle, there's nothing else to do.