This is somewhere between a suggestion and a bug. It has a fairly major impact on the ability to actually generate HTML output, so I'm posting it here. Also, I suspect that this would be a fairly easy item to fix.
When you drag and drop a file, the HTML tag created does not have the URL quoted in strings as required by W3C. More importantly, since many people will be dragging and dropping from their home directories below "Documents and Settings" (note the spaces!), the resulting URL will be unusable when exporting to an HTML file.
Thanks,
Mark