After the new patch I created a new character (on RK). After running around for a bit and getting a few pieces of gear that can be upgraded I tried to "use" them to upgrade them by right clicking while I had them worn. Before the expansion this would work; the upgraded equipment would appear unequipped in your inventory. Now I notice you cannot do this. Every time you try it says something like "You have to unequip this item to delete it" (I can't remember exactly and I am not on my computer with AO at the time of posting).