Sometimes players when starting get the items I want them to have but they all have 0's on them. The item icons are correct tho. However, if you try to place or wear these items with the 0's on them, they instantly vanish.

This only happens when used in SMP environment.

Also, there are no logs to indicate what if anything is happening generated. Meaning, that I watch for the logs, but there is console output in regards to it nor is there a crash report (because nothing crashes).

I'm wondering if the issue is because I have it installed on both the client and the server. But then, I want the players to be able to use this for SSP as well as the mod indicates that it is designed for.

Any help greatly appreciated it.

I'm using this in my Extreme 1.8 Mod Pack at http://www.kreezcraft.com

It sounds like the client is adding the items, but the client should only be adding items in a SSP environment... I'll try to make time to look into it.