Thank you for reporting this bug. Unfortunately, we need more information before the developers can begin working to resolve it.
* In Xfce, you can only move an icon on the desktop to a blank space, you can not rearrange the icons by inserting it in where there is an icon already. Can you move a single icon to an empty area of the desktop?
* Moving multiple icons will not work. You can select several icons at once, but they will not move.
* Moving icons on a remote desktop does not work. Are you on the actual desktop?
* Are you using hardware or a virtual machine? If a virtual machine, which one?
* Can you move an icon when compiz is not enabled?
Thanks for your repsonse.