Inventory management for NPCs

I was going through the Mines with Magnus and he saw a sword. Before I could pick it up, he raced over there and grabbed it. He is now using it and won't give it up -it has to be an awsome sword, because even if I give him a axe that does like 5-20 damage, he keeps the sword! Is there a way to get NPCs to "give up" items you cannot see in their inventory -such as armour and weapons. If I want to switch armour between two characters I can't, because they won't give up their armour.
My other question is, what armour can Mead Mugg the Ogre wear? I've given him a couple types, but he doesn't put them on -does he require "large" armour?

 

Mead Mugg requires large armor, which in the beginning of the game i had found a lot of large leather armor and large guard armor. as for npc's not giving up their items, you have to switch to their "body" inventory in order to equip a specific item for them. to get there click on the little icon below the circle that takes you back to the main screen. i dont remember what it is off the top of my head, but there are two little icons to switch between the backpack and the body. one of them is a little picture of a bag. they are above the inventory. once you see what the have equipped then you can take what you want off of them and give it to yourself. if you dont get what im saying let me know and ill try and be more clear.

 

the other icon i believe is of a stick figure for the equipment they have equipped.