So, I've been playing Witcher 2 on 360 and watching the Quick Look this evening, I realized that when Patrick went near a lootable corpse or item, a little preview window showed up in the lower right hand corner of his screen. On my version of that game, that doesn't happen. I just get a button prompt that says "Search" - am I missing something? Is this a bug?

That is unfortunate.

The problem is likely that you have enabled Large Fonts. I started the game with the regular sized fonts and noticed the loot preview during the tutorial section,. The small fonts were kind of a pain, so I exited and enabled the large fonts via the main menu (do not believe you can switch them in a game). Upon starting again, I noticed the loot preview had vanished.