Drag and Drop copying files to remote no longer works

The feature that allows you to drag n drop files and folders from your local machine to the remote no longer works in 3.7. I thought it may have been a preference that was changed in the update but have not been able to find any setting that makes a difference. It worked fine prior to 3.7 update. Local machine is 10.8.5

Avoid this update if this is a feature you use.

Matthew Sobol about Apple Remote Desktop