Description of problem: When copying an item to a folder, the workflow is not properly applied. This is related to bug 100809, which had been fixed on the trunk. Looking at the database, it appears as though another workflow instance is created and applied to the original item, not the copied item. Posting table data as an attachment, since bugzilla won't format it correctly.
Created attachment 96434 [details] Annotated db session This shows what's in the database after creating a folder, creating an item, then copying the item into the folder.