Are you using all those engines to power the quarry? They each generate 2 MJ (if it's electrical engines which it looks like) and a quarry can only take 8 MJ, so anything over 4 engines is a waste.
A requirement for it to work without dropping items is to make sure your item export teleport pipe is in the same chunk as the quarry, but as you put it pointing upwards that will always be the case. There is a risk your power teleport pipe might be outside the chunk bound though if you're unlucky, in which case the quarry will stop working as soon as you leave.
A tip is to, at the factory location, make sure that your item inflow pipe and your power outflow pipe is in the same chunk. That way, if your factory chunk unloads the quarry will automatically stop (it's not getting power anymore) and that will prevent it form spewing out items that can't get teleported to the now non-existant receive pipe.
Also important that you have the sorting system on the same chunk as the receive pipe, or it will start plopping out items. Redpower sorting is better like this, as it will not pop out items if it happens to cross an unloaded chunk border.
This is why i dislike buildcraft pipes, so many things to consider that the average user does not know about. And if you fail to take even one thing into consideration you can bring the entire server down, without even understanding what you did.
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Daedalus II ex-CEO TOGOA, Daedalus III slave of Daedalus II
Little Molok Asura Engineer
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Last edited by DaedalusAlpha; 8th February 2013 at 10:13 PM.