ahhh, ser, I think the root of the problem is that your script should deal with loop statements, not if statements when it comes to setting them. I can help a little bit, but not much, because my understanding of how to work loops is limited and this is usually where I go to 420 or throbble for help.
The only two changes I feel safe telling you to make is to remove the int nInt identifier from the script because as far as I can tell, it does nothing in there. pretty much other than that its okay until the end - you forgot to use a command to make the item identified. After that last if statement is where the loop I was talking about comes in. basically, if you get a loop in there properly it'll keep going through each item in the inventory of the object and setting it to droppable and identified until there are no more items in the inventory.
-Elessar