I died and received the message that there was no valid place for the grave. but when i went back to where i died, the items hadn't been dropped either. Would be nice if it was kinda one or the other.

Oops. Looks like I missed a bit of logic when I re-wrote the mod; you're correct - it should either collect the items into a grave or drop them on the ground, but I forgot to implement the second portion of that. I'll try to get a fix out tomorrow. Thanks for bringing this to my attention!