Version: (using KDE KDE 3.2.0) Installed from: Mandrake RPMs the icon moving is now more flexible (it can be moved even for just a few pixels, unlike before where you could not do that). However, when "holding" the icon, it is positioned completely differently than when releasing it back onto the desktop which results in having to compensate for this misalignment. Also desktop icon focus frame (tab-focus) and selection shadow would be a lot nicer if it was more like Gnome/OS X.
Its very uncomfortable try to align desktop icons by hand. They do what they want and never are perfectly aligned. Automatic grid align does not maintain the same separation between icons. The separation between icons seems related to icon-text width, and its very ugly because the symmetry is lost.
*** This bug has been marked as a duplicate of 67140 ***
Bug closed. Kdesktop is no more mantained.