I was able to reproduce this bug in Feisty by the following steps.
1) Open Firefox
2) In the menu go to: Bookmarks -> Organize Bookmarks
3) Click on a bookmark and attempt to drag to a different location
This regression from the previous version is also present when hitting
Control-B to open the bookmarks side panel.
** Changed in: firefox (Ubuntu)
Importance: Undecided => Medium
Status: Unconfirmed => Confirmed
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Cannot move bookmarks in bookmark editor
https://launchpad.net/bugs/79018
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