Dragging a link to the desktop from a Netscape window works
properly - it creates a quick URL link on the desktop as
one would expect. However, anything beyond the desktop
itself is not created properly.

Try this: Create a new folder called "Test" on the desktop.
Drag a link to this folder from the Netscape window and
drop it over the folder. GNOME creates a file in the folder
with a temporary name, but it is not a link document as you
might think. The content of the file is the URL.

The same thing applies if you have the File Manager window
open to a directory and drop the link on top of it. The
only place the link creation seems to work is on the
desktop. Most annoying.