diff -ru xfdesktop-4.8.2//src/xfdesktop-file-icon-manager.c xfdesktop-4.8.2-drag-move-ok//src/xfdesktop-file-icon-manager.c
--- xfdesktop-4.8.2//src/xfdesktop-file-icon-manager.c	2011-04-22 15:21:52.000000000 -0300
+++ xfdesktop-4.8.2-drag-move-ok//src/xfdesktop-file-icon-manager.c	2011-05-17 02:43:18.954482297 -0300
@@ -2912,7 +2912,14 @@
 
                     if(dest_basename && *dest_basename != '\0') {
                         GFile *dest_file = g_file_get_child(base_dest_file, dest_basename);
-                        dest_file_list = g_list_prepend(dest_file_list, dest_file);
+                        /* It seems that if we copy the file we must send the full target file path,
+                         * and if we are moving the file to the desktop, we need to send just the
+                         * target directory where the file will be moved into. */
+                        if(copy_only) {
+                            dest_file_list = g_list_prepend(dest_file_list, dest_file);
+                        } else {
+                            dest_file_list = g_list_prepend(dest_file_list, base_dest_file);
+                        }
                     }
 
                     g_free(dest_basename);