Files on the desktop cannot be dragged into a folder on the desktop. They can, however be dragged from an instance of PCManFM and dropped into a folder on the desktop.
In order to reproduce it, see amjjawad's video at http://www.youtube.com/watch?v=ix6P6ZwQR-k
DistroRelease: Lubuntu 13.10
Package: pcmanfm 1.1.0-0ubuntu2
PCManFM 1.1.0
Also tested on two different distros (Puppy and Semplice) with PCManFM and libfm 1.1.0. On both distros drag and drop doesn't work on the desktop.
Anonymous
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Bug report for Lubuntu in Launchpad:
https://bugs.launchpad.net/pcmanfm/+bug/1179167
Thank you very much for the report. I believe the issue is completely fixed in GIT repository. The fix touches both libfm and pcmanfm sources and it will be included into next bugfix version 1.1.1.
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I can confirm it (on Lubuntu).
Installing libfm and pcmanfm from Git sources, it works:
https://dl.dropboxusercontent.com/u/832939/DnDworks.ogv
The fix is included in released version 1.1.1.
Thank you very much.