rshepherd, in addition to sending the report, I was wondering if you could let us know what the path is to the folder (or possibly, alias) that you're dragging into Espionage?
One way you can do this is to open up the Terminal app (use Spotlight to find it), and drag whatever it is you're dragging onto the Terminal window. You should see the text of the path to that file/folder then, just copy all of that output and paste it here. This will make it easier for us to figure out what's going on and "reconnect" the folder with Espionage.