Can confirm this problem by following the given instructions.
In addition, when trying to drag, the whole desktop freezes or about a
minute.
Organize move works once with empty folder moving the same folder with a
bookmark in it again, has the folder disappear.
** Changed in: firefox-3.0 (Ubuntu)
Importance: Undecided => Medium
Status: New => Confirmed
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can't move bookmark folders in bookmark organizer
https://bugs.launchpad.net/bugs/198198
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