Hello:)
I have also noticed that characters (recruited heroes) do not have an equipment button until I physically give them an item by clicking and dragging an item from my sovereigns item list to their portrait. Even if they already have a weapon or armor. If I give them an item the hero will then have an equipment button below their portrait that I can access. However, their existing inventory does not register as items. In other words, their exisiting equipment (shirts, daggers, etc) will not appear in the "item list" on the interface. Nor can these items ever be sold to shops.
Not sure what information to post as this was not a crash and dumps/debug.err do not apply, but I will include my DXDIAG if that helps.
DXDIAG:http://paste.org/pastebin/view/20964
Many Thanks 
Sara