For those too inept to figure out the rudementary concept that is stealing and not getting caught.
Distraction: Simply approach the npc you want to take from and talk to them. This prevents them from turning and seeing you steal. You can do this to two other npcs if there are several people walking around.
The Theft Have a second party memeber, the one who isn't talking sneak outside of the victims npcs field of view. Then grab the items you wish to steal. In this example I take a bucket.
The Swindling The npcs are smart, so you have to be careful now. Take the item you stole and put it on the ground. Yes, just leave it there. Better yet, put it in a chest or crate, or shove it in some other npcs pocket. The point is, none of your party memebers should have it on them.
The Questioning Stop talking to the npc and let them walk a few feet away, realizing instantly that they have lost something oh so precious. Obviously the npc wont be too happy about you stealing their prized bucket and leaving it on the ground where they will never find it so prepare to have your goodies searched. Let them search you and blatently ignore the item on the ground or in their own belongings. If you split up your party, be careful they dont search you twice.
Collect your Prize! Now you will see that the item is no longer red and can be picked up and taken. It will also be marked stolen, a sign that you're a dirty thief!