http://www.project1999.com/forums/sh...96&postcount=6
Read this.
See how the patch note explicitly states sneak was changed to not drop when you hit. Also how the sneak guide was edited just before and makes note that a new way to sneak pull is available due to the recent changes to sneak. When described its exactly what you describe. You could hold sneak through throwing an item. But that's 2002. Aka never on this server.
The change was 5/8/2002 -
http://www.tski.co.jp/baldio/patch/20020508.html