Drag/drop of .gif & video files into blog body(at least on FF) hangs/dies, regardless of size it seems. I assumed I was just overloading it with big files but I tried with a much smaller one this last time, no go.. And I'm not sure but I think auto generation of thumbnails for videos posted to the gallery and inserted into blog posts is still broken too. It can make video/gif sharing a bit difficult.
I just tried the drag/drop upload to blog body again, first with a 2mb .gif file, the upload bar seemed like it was working and when it got to 100% the dialog went away and it just sat there saying Uploading.. with no bar. Then I added the second larger file and got the error finally.
The larger file is the one I was able to upload for the title image of my last blog entry... DD there works perfectly, just not dd to the body...
Also I'm pretty sure the same thing happens using the choose files link, so not just DD related.