I can confirm that the issue related to kde-window-manager. If I change
window manager in KDE system settings to Metacity, I can drag ruler in
both positions. If I switch back to KDE default window manager, I can
only drag ruler while it is placed horizontally.

My kde-window-manager package version is 4:4.5.1-0ubuntu8

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Dragging does not work when ruler oriented vertically
https://bugs.launchpad.net/bugs/680446
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