This is not a Ubuntu problem, but a Firefox thingy.
Users of MS Windows also reported the same problem.
You can fix this problem by doing the following steps:
Quit Mozilla Firefox
Go to ~\.mozilla\firefox
Rename "profiles.ini" to (for example) "OLDprofiles.ini"
Start Mozilla
The Drag&Drop function is now working and a new profile is created.
To get your bookmarks back:
quit Mozilla Firefox,
go again to the folder ~\.mozilla\firefox
remove the fresh created profiles.ini and corresponding folder.
(to be sure that you remove the correct folder, open the fresh created
profiles.ini to show the name of the folder)
Rename your "OLDprofiles.ini" back to it's original name.
** Changed in: firefox (Ubuntu)
Status: Incomplete => Fix Committed
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drag and drop bookmark functionality broken
https://bugs.launchpad.net/bugs/551090
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