Drops

So... all I've gotten are a couple of Hardened Shards and Leather from Normal, and a Sharpened and Shining Shard on Hard...

Does he really drop Divine Weapons?

I've heard that Solo and Normal have a chance to drop items, Easy doesn't drop anything, and Hard has a 100% chance to drop two items?

I can confirm that Hard has a 100% chance of dropping two material items. Sometimes 1 weapon, but it seems to be pretty rare. In Normal, it seems to be 50/50 whether you get an item or not, as some folk in the party will get items and some won't. I heard tell that Weapons can drop in Normal, but I haven't seen that personally. I've never heard of anyone getting a Weapon in Solo.

In Normal, weapons can drop as well, just probably more rarer than in Hard.