I am confirming this bug. I did not have this issue with Firefox 3.0,
but with 3.0.1, it does just create a link to the online URL of the file
instead of downloading the file.
** Changed in: firefox-3.0 (Ubuntu)
Status: New => Confirmed
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FF 3.0.1 No Drag and Drop support for Images (Ubuntu 8.04)
https://bugs.launchpad.net/bugs/261435
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