I can reproduce this issue in 11.10.
Steps:
 - Click on speaker icon
 - Applet pops up
 - Click on slider
 - Applet disappears
 - Click on speaker icon a second time.
 - Applet appears, and slider moves left/right with the mouse until I click.

I'm running in VirtualBox - so may have slower than native graphics updates - 
but behavior matches razor7's description.
I'll try to gather more data.

** Package changed: ubuntu => indicator-sound (Ubuntu)

** Changed in: indicator-sound (Ubuntu)
       Status: New => Confirmed

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https://bugs.launchpad.net/bugs/845001

Title:
  Ubuntu 11.10 x64 beta1, Tray Sound Volume popup closes on volume
  handler drag

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