Public bug reported:

Binary package hint: xfdesktop4

I'm running Ubuntu 10.04 32bit with Gnome, but XFCE environment is also 
installed and it's the main environment I use.
The machine is remote, so I use it via VNC with resumable sessions.
The desktop icons (Home, Filesystem, Devices, Floppy, etc.) are unmovable via a 
VNC session. Sometimes when I turn on an external USB device, it's icon appears 
in the middle of the pack, changing position of other icons. Once the device is 
turned off, the icons stay shifted down. (But this is another "bug") After such 
an event, I cann ot put the icons back to their usual place.
(But this isn't caused by the USB device. The icons are unmovable in general, 
regardless of the USB thing, that was just an example.)
The icon gets highlighted, the "hand" cursor appears, the icon moves when 
dragging it, but the usual rectangular position marker (where it can be 
dropped) doesn't appear. After releasing the mouse button, the icon flies back 
to its position.
When logging in physically, to the same environment, the icons are moveable.

** Affects: xfdesktop4 (Ubuntu)
     Importance: Undecided
         Status: New

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Can not move icons on the desktop through a VNC session
https://bugs.launchpad.net/bugs/662602
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