Okay, now this is bizarre...
Look at the attached image of my search results. When I open 'client.exe' manually, it brings up UO version 7.0.40.1. When I load up a character and look in his pack, nothing. Same if I open a client through EUO.
When I open 7.0.40.1 from the UO patch client launcher, I can see the skulls. Interestingly, when I do this and THEN open EUO, EUO won't see the client or be able to interact with it in any way.