Yes it does work, in game. I just checked again.
What I do to check is this. With loot editor, I loaded Oasis zone, spawn id #37000 cistern asp, Had the program create a new spawngroup id, and a default dropdropid. I changed the item to be dropped to 100% and the item was an egg, item 13088. Clicked save
Loaded the server, then went to Oasis. Typed in dbspawn 37000, the asp spawned, and collected the egg that dropped after the kill.
So, I would check by spawning that exact npc whose loot you modified and see what drops.
usage: dbspawn npcid
GeorgeS
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