My Suggestion is to make use of the black body image within the equip menu. Like make each body part have a color pop up when that piece of gear is damaged, or have it black outline of armor your wearing and have it move the same ingame. Something like how are login menus are for character select.
http://game.watch.impress.co.jp/img/...349/rea_03.jpg
Drag and drop seems fine. The only sight problem I see is how those slots are displayed on the equip menu.