I have always left it set to Free For All. The problem with Rift is it loots the blues from bosses when set to FFA and they are untradeable. I have to remember to switch it to Master Looter. I've lost a few blues that way.
I wish they would make it like WoW and either let you trade items or if it is on FFAl confirm you are about to loot a blue. A pain, but one I am sure they will fix eventually.
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