diff --git a/browser/base/content/browser.js b/browser/base/content/browser.js
index 5b7622b51d78..841268a177d3 100644
--- a/browser/base/content/browser.js
+++ b/browser/base/content/browser.js
@@ -2016,13 +2016,17 @@ var personalToolbarDNDObserver = {
       if (navigator.platform != "Win32" && target.localName != "toolbarbutton")
         return;
 
+      // bail if dragging from the empty area of the bookmarks toolbar
+      if (target.localName == "hbox")
+        return
+
       // a drag start is fired when leaving an open toolbarbutton(type=menu) 
       // (see bug 143031)
       if (this.isContainer(target) && 
           target.getAttribute("group") != "true") {
         if (this.isPlatformNotSupported) 
           return;
-        if (!aEvent.shiftKey && !aEvent.altKey)
+        if (!aEvent.shiftKey && !aEvent.altKey && !aEvent.ctrlKey)
           return;
         // menus open on mouse down
         target.firstChild.hidePopup();
@@ -2091,7 +2095,7 @@ var personalToolbarDNDObserver = {
       //target = { parent: "NC:PersonalToolbarFolder", index: 1 };
     } else {
       var orientation = bt.getBTOrientation(aEvent);
-      var selTarget   = bt.getBTTarget(aEvent.originalTarget, orientation);
+      var selTarget   = bt.getBTTarget(target, orientation);
     }
 
     const kDSIID      = Components.interfaces.nsIDragService;
@@ -2100,8 +2104,8 @@ var personalToolbarDNDObserver = {
     // hide the 'open in tab' menuseparator because bookmarks
     // can be inserted after it if they are dropped after the last bookmark
     // a more comprehensive fix would be in the menupopup template builder
-    var menuTarget = target.localName == "toolbarbutton" ||
-                     target.localName == "menu"          && 
+    var menuTarget = (target.localName == "toolbarbutton" ||
+                      target.localName == "menu")         && 
                      orientation == BookmarksUtils.DROP_ON?
                      target.lastChild:target.parentNode;
     if (menuTarget.hasChildNodes() &&
diff --git a/browser/components/bookmarks/content/bookmarks.js b/browser/components/bookmarks/content/bookmarks.js
index 0b7d74a17f0b..63f73c1c4c91 100644
--- a/browser/components/bookmarks/content/bookmarks.js
+++ b/browser/components/bookmarks/content/bookmarks.js
@@ -1206,7 +1206,8 @@ var BookmarksUtils = {
       if (!aSelection.isValid[i])
         continue;
       if (!BookmarksUtils.isChildOfContainer(aSelection.item[i], aTarget.parent) ||
-          aAction == "move" && aSelection.parent[i] == aTarget.parent)
+          aAction == "move" && aSelection.parent[i] == aTarget.parent            ||
+          aSelection.isContainer[i])
         isValid[i] = true;
     }
     return isValid;
@@ -1243,7 +1244,7 @@ var BookmarksUtils = {
   },
 
   /////////////////////////////////////////////////////////////////////////////
-  // Returns true is the selection can be insert in aFolderURI
+  // Returns true if aSelection can be inserted in aFolder
   isValidTargetContainer: function (aFolder, aSelection)
   {