That makes 2 of us. It's not surprising that you couldn't duplicate the error as well. I wasn't implying that this was a general microsoft error across the board for vista and I know that it's specific to my system. The question is why and how can I fix it.
Yep, that's not the case either. After searching around google a little more, I found out that the new filename is probrably the name of $I file (the file use to keep track of info about deleted files similar to the INFO2 file in earlier versions of Windows). I wonder why it keeps the name of the $I file instead of the original filename after it is restored by using drag and drop.