When dragging a file or directory from xffm to a receptive application (e.g. Terminal) the first component of the path is lost. e.g. if I wanted to cd to /soft/work/xfce4/xffm in the Terminal and dragged the directory from xffm it generated command line would be "cd /work/xfce4/xffm".
Seems terminal favours file:/ instead of file://, so we'll use the former.