I think it's just a glitch in the inventory - from the Equipment screen, it looks like you have just the sword equipped (well, the arrows as well, but that has no effect unless you have a bow equipped).
Try this: Unequip the short sword. Then drop the bow on the ground. Pick it up again, and see if it still shows equipped.
If you can get it to where neither is equipped, everything should be fine. If you *can* somehow get both showing "Eq." again, please post the sequence of things you did to get it that way. I haven't been able to duplicate this (using a development version of the client), so either this is a bug that's been fixed, or I just haven't followed the correct sequence to duplicate it.