I confirm that It does not work at all under Feisty. I think this is a too bad regression because it is really anti-ergonomic: without this feature managing archives is not at all user-friendly. This kind of misfeature might even make some people leave Ubuntu I think...
IMHO its importance should thus be more serious than medium: it should be fixed before Feisty's release... please -- Drag n' Drop directories from File-Roller is somewhat tricky https://launchpad.net/bugs/13199 -- desktop-bugs mailing list desktop-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/desktop-bugs
