When you have the application open, and you attempt to drag a file or directory out of the archive and onto the desktop (Lubuntu), you get a permissions error, and then the system hangs. You are unable to click anything or even shutdown (because you cannot click the shutdown button)
ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: file-roller 3.4.1-0ubuntu1
ProcVersionSignature: Ubuntu 3.2.0-26.41-generic-pae 3.2.19
Uname: Linux 3.2.0-26-generic-pae i686
ApportVersion: 2.0.1-0ubuntu8
Architecture: i386
Date: Sun Jul 15 12:13:11 2012
ExecutablePath: /usr/bin/file-roller
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Release i386 (20120423)
ProcEnviron:
TERM=xterm
SHELL=/bin/bash
PATH=(custom, no user)
LANG=en_GB.UTF-8
LANGUAGE=en_GB:en
SourcePackage: file-roller
UpgradeStatus: No upgrade log present (probably fresh install)
seems like bug #878993