It seems this bug is actually not a duplicate, nor is it fixed upstream.
See, the gnome-devs new comment:
http://bugzilla.gnome.org/show_bug.cgi?id=434193#c6
He says it is a problem with ubuntu-gtk+
** This bug is no longer a duplicate of bug 104395
Nautilus won't allow scrolling with mousewheel while dragging a file
** Changed in: nautilus (Ubuntu)
Status: Invalid => Confirmed
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Nautilus Graphical Glitch When Dragging File
https://bugs.launchpad.net/bugs/368214
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