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I can't directly remove items out of our FC storage in our new house. I can put things into my inventory and then get the out but when it comes to vases with flowers in them, it says that putting them into my inventory will destroy the flowers. I've logged out and restarted the game. We did relocated to a large house from a medium. Currently we are at 260/400 items in the house.
[IMG]http://i66.tinypic.com/11gobgx.jpg[/IMG]
Try moving around to different areas and changing camera angles before trying to place the storage items. I've had difficulty with some items where it took multiple tries running around in a frenzy. :|
I now can't put items into storage either. :( I know the dance you're talking. I can still do things at my house, just not the FC's.
If the character's rank still has the furniture placement/removal permissions, then I'd try setting the permissions off, confirm and then back on (if it's not the master rank). See if that resets things to how they should be. If not then it may be something beyond your control and you'll need to contact a GM/file a bug report.
I had that issue as well, with not being able to place out of storage. I fixed it by turning off the "Display Preview" option at the bottom of the window.