I can reproduce this problem on up to date 8.04. Basically what's happening is 
the list box only appears to be registering mouse clicks to select its items. 
When you navigate to it using Tab loop or the Alt+R shortcut, it doesn't 
actually change the destination folder (even though the list item is 
highlighted as if
selected by mouse). This is a minor UI issue, most people use mouse for 
operating these sort of UIs awyway.

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gthumb folder keyboard control
https://bugs.launchpad.net/bugs/180233
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