Hi, what is the command-line returning if you type:
ls -l ~
in your favorite terminal to check the detailed user permissions on this directory ?

-- Babaorum

urgh. It's not my favourite terminal, but xterm's what we've got.

drwxr-xr-x 2 tux tux for Desktop/ and -rw-r--r-- 1 tux tux on the file I'm trying to move from it to tux/. drwxr-xr-x 26 tux tux on the ~ folder itself, if you care

This might be a limitation of the way openbox is setup on SliTaz.I can't drag and drop a desktop file into a desktop folder without the source/destination same file error . I copy,cut,and paste using the right click context menu. Another option is to click the desktop folder which launches folder open in pcmanfm and drag the desktop file into that but it's always a move/ cut operation.

The name "My Documents" doesn't make sense when it opens /home/~ If anyone knows how to change that icon so it doesn't say My Documents please reply.

No guarantees

Hmm... kind of really strange thing, I cannot find any explanation for this.
In fact your directories permissions seem perfectly right !
Write access is on, nothing else cares here.

But you should try to give a write permission to your file too. I'm not sure of my fact, but let's give it a try.

Nope