The same problem happened across all different platforms. The test case is
DnD quick look test suite, test case "JDK1.2x AWT TextField Test" and
"JDK1.2x Swing JTextField Test". Both cases are older version of DnD.
After I dragged, the recognizer showed on native application, then,
I dropped on the target JVM, but, the contents did not drop.

  The test suite is at /net/sqesvr/export/dnd/Kestrel_dnd_ws/DnDQLKestrel

Run this TestCase and select the item
1) "JDK1.2x Swing JTextField Test"
and
2) "JDK1.2x AWT TextField Test"
and do drag-n-drop operation.