You need to set up macros for it under Config>macros.
There are text commands to equip things, and also a command to equip abilities to the menu, both are useful in macros.
But beware that it's still buggy right now, and many times I have to spam a macro for it to react, followed shortly after by a crash. At also takes like 2 seconds for each line of the macro to execute, so it's in no way as quickswap capable as FFXI, and you also have to be out of battle mode.
As for the circle with japanese text, it's showing your overall gear's health, i think. Based on the colour of the circle background.
Edited, Sep 3rd 2010 4:35pm by RattyBatty
Minecraft : My anti-MMO
Terraria : My anti-Minecraft