Man, that was an annoying one.
Fixed in Intrepid with the KDE4 version of Dolphin.
I would highly recommend that Hardy users at least try the KDE4.1 version of
Dolphin, it's much superior.
** Changed in: dolphin (Ubuntu)
Status: Confirmed => Fix Released
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Dolphin drag and drop targets wrong directory
https://bugs.launchpad.net/bugs/152788
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