Comment 2 for bug 30870

This isn't an issue with nautilus, it seems like an issue with any GNOME applications. I've been experiancing this annoyance from Warty to Dapper.
I took a look at my mouse actions using the xev event tester, and the ButtonRelease actions were happening just fine.

There is an easy way to reproduce it. Click on a menu item in the Applications menu (Take gedit for example) and quickly move your mouse away. The drag cursor will appear and there will be no apparent way to get rid of the object being dragged. There should never be an object attatched to the cursor when the mouse button is not held down.

I posted a thread to the mailing list, and I've received many replies of users who have experiacned this same bug