Clarification in item number 5 to reproduce the bug:
Should read click the "Cancel" button in the new text dialog box.

Ah, bah. This must be related to my fixes for http://bugs.kde.org/show_bug.cgi?id=136151 :-(.

Cyrille's fixes, actually. But I'll look at it.

SVN commit 617757 by rempt:

BUG: 138429 Simple fix for this bug.
Also: add keyboard handling to the move tool for pixel-precise layer moving


 M  +72 -3     kis_tool_move.cc  
 M  +14 -1     kis_tool_move.h  
 M  +3 -2      kis_tool_text.cc  


--- branches/koffice/1.6/koffice/krita/plugins/tools/defaulttools/kis_tool_move.cc #617756:617757
@@ -39,10 +39,14 @@
 
 KisToolMove::KisToolMove()
     : super(i18n("Move Tool"))
+    , m_subject( 0 )
+    , m_keyEvent( 0 )
 {
     setName("tool_move");
-    m_subject = 0;
+
     setCursor(KisCursor::moveCursor());
+    m_repeatTimer = new QTimer(this);
+    connect( m_repeatTimer, SIGNAL( timeout() ), this, SLOT( slotMove() ) );
 }
 
 KisToolMove::~KisToolMove()
@@ -66,14 +70,13 @@
         if (!img || !(dev = img->activeLayer()))
             return;
 
-        m_dragStart = pos;
         m_strategy.startDrag(pos);
     }
 }
 
 void KisToolMove::move(KisMoveEvent *e)
 {
-    if (m_subject) {
+    if (m_subject  && e->state() == QMouseEvent::LeftButton) {
         QPoint pos = e->pos().floorQPoint();
         if((e->state() & Qt::AltButton) || (e->state() & Qt::ControlButton)) {
             if(fabs(pos.x() - m_dragStart.x()) > fabs(pos.y() - m_dragStart.y()))
@@ -110,3 +113,69 @@
     }
 }
 
+
+void KisToolMove::keyPress( QKeyEvent *e )
+{
+    m_keyEvent = e;
+
+   if (m_subject) {
+
+        KisImageSP img = m_subject->currentImg();
+        KisLayerSP dev;
+
+        if (!img || !(dev = img->activeLayer()))
+            return;
+
+        m_dragStart = QPoint( 0, 0 );
+        m_strategy.startDrag( m_dragStart );
+        m_steps = 1;
+        m_repeatTimer->start(200);
+
+    }
+}
+
+void KisToolMove::keyRelease(QKeyEvent *)
+{
+    m_repeatTimer->stop();
+
+    if ( m_subject && m_keyEvent) {
+
+        if ( m_keyEvent->key() == Qt::Key_Left ) {
+            m_strategy.endDrag(QPoint( -m_steps, 0 ));
+        }
+        else if ( m_keyEvent->key() == Qt::Key_Right ) {
+            m_strategy.endDrag(QPoint(m_steps, 0) );
+        }
+        else if ( m_keyEvent->key() == Qt::Key_Up ) {
+            m_strategy.endDrag(QPoint(0, -m_steps) );
+        }
+        else if ( m_keyEvent->key() == Qt::Key_Down ) {
+            m_strategy.endDrag(QPoint(0, m_steps) );
+        }
+    }
+    m_steps = 0;
+    m_keyEvent = 0;
+
+}
+
+void KisToolMove::slotMove()
+{
+    if (m_subject  && m_keyEvent) {
+
+        if ( m_keyEvent->key() == Qt::Key_Left ) {
+            m_strategy.drag(QPoint(-m_steps, 0) );
+        }
+        else if ( m_keyEvent->key() == Qt::Key_Right ) {
+            m_strategy.drag(QPoint(m_steps, 0) );
+        }
+        else if ( m_keyEvent->key() == Qt::Key_Up ) {
+            m_strategy.drag(QPoint(0, -m_steps) );
+        }
+        else if ( m_keyEvent->key() == Qt::Key_Down ) {
+            m_strategy.drag(QPoint(0, m_steps) );
+        }
+
+        ++m_steps;
+    }
+
+}
--- branches/koffice/1.6/koffice/krita/plugins/tools/defaulttools/kis_tool_move.h #617756:617757
@@ -21,11 +21,14 @@
 #ifndef KIS_TOOL_MOVE_H_
 #define KIS_TOOL_MOVE_H_
 
+#include <qtimer.h>
+
 #include "kis_strategy_move.h"
 #include "kis_tool_non_paint.h"
 #include "kis_tool_factory.h"
 
-// XXX: Moving is not nearly smooth enough!
+class QTimer;
+
 class KisToolMove : public KisToolNonPaint {
 
     typedef KisToolNonPaint super;
@@ -46,11 +49,21 @@
     virtual void buttonPress(KisButtonPressEvent *e);
     virtual void move(KisMoveEvent *e);
     virtual void buttonRelease(KisButtonReleaseEvent *e);
+    virtual void keyPress(QKeyEvent *e);
+    virtual void keyRelease(QKeyEvent *e);
 
+private slots:
+
+    void slotMove();
+
 private:
+
     KisCanvasSubject *m_subject;
     KisStrategyMove m_strategy;
     QPoint m_dragStart;
+    QTimer * m_repeatTimer;
+    QKeyEvent * m_keyEvent;
+    int m_steps;
 };
 
 
--- branches/koffice/1.6/koffice/krita/plugins/tools/defaulttools/kis_tool_text.cc #617756:617757
@@ -83,7 +83,6 @@
 
     if (m_subject && e->button() == QMouseEvent::LeftButton) {
         if(!m_wasPressed) return;
-        m_windowIsBeingShown = true;
         m_wasPressed = false;
         KisImageSP img = m_subject->currentImg();
 
@@ -91,8 +90,10 @@
         bool ok;
         QString text = KInputDialog::getText(i18n("Font Tool"), i18n("Enter text:"),
              QString::null, &ok);
-        if (!ok)
+        if (!ok) {
+            m_windowIsBeingShown = false;
             return;
+        }
 
         KisUndoAdapter *undoAdapter = img->undoAdapter();
         if (undoAdapter) {

*** Bug 139013 has been marked as a duplicate of this bug. ***