Interesting. Looks like upgrading my device to v1.0.4 (which upped Samba
3.0.24) did the trick. Now works as expected, dragging from window to
desktop copies the files no problem. Maybe a Samba 2 vs Samba 3 problem.

Anyway, looks "fixed" to me. :)

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Nautilus folder copy fails with "Permission Denied" from SMB network share to 
desktop
https://bugs.launchpad.net/bugs/208828
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