Yep, you have to be in an actual guild raid in order to change it from personal loot. As I understand it though, you can still trade any item that drops for a player IF it is a lower ilevel than what they have equipped.
I made my team Engineers and am using the Loot-a-Rang now. My key has everyone use the Loot-a-Rang and round robins through the following macro:
/run LootSlot(1)
/run LootSlot(2)
/run LootSlot(3)
/run LootSlot(4)
/run LootSlot(5)
/run LootSlot(6)
/run LootSlot(7)
/run LootSlot(8)
/run LootSlot(9)
/click StaticPopup1Button1
It takes about two seconds for all 20 characters to loot all corpses in range. I love it.
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