The problem occurred when the render distance was increased to more than 10 chunks. It might of been because of the 3 screens. When the render distance was at 11 chunks, item drops would not be picked up. I increased it up to 23 and it was fine but 24 or above was terrible. When I moved it would copy my chunk (at least i think it did) and put it all around me. The images will help describe what happened. (I only moved 3 or 4 blocks the whole time)

Thanks
Tristan