Well, using KTool Text Editor to compile the above script, it compiled to .ncs in about 11ms.
Then when I looked for the .ncs file, it was (and is) non-existent
Very strange indeed.... never seen this before. I will have to think about it a bit, but this is curious. I am wondering if it is because of the logic of CreateItemOnObject v. ActionEquipItem... but at this point at a bit of a loss.