Been There Done That
I've been documenting this *feature* for some time now on my blog and posted the other day about the joy after installing the SP1 RC for Vista
http://www.winextra.com/2007/12/15/vista-copymove-the-service-pack-1-rc1-follow-up/
It is much the same results as the pictures with the article .. in other words it's still not fixed