This is happening to me on 11.10 with File Roller 3.2.1. I am getting am
trying to drag and drop and I am getting:

Extraction not performed

You don't have the right permissions to extract archives in the folder
"file:///home/elijah/websites/loc.gitsite.gary.com/sites/all/modules/features/articles/xds.txtodules"


Not sure what to do but thought I would add it here. If I go up one level I can 
drag and drop and then drag the files/folders into the desired folder within 
Nautilus.

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https://bugs.launchpad.net/bugs/483541

Title:
  File-roller drag'n drop is unreliable

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