I have been having this problem with my Windows 7 x64 Professional install. Whenever I delete a file to the recycling bin, and then drag it out (to the desktop usually) to restore, the file is renamed to what it would be like in the temp folder. Is this the expected action of Windows 7 and dragging files out of the recycling bin? Or is there a way to restore the "restore" function of dragging files out of the recycle bin. In the third frame of this picture I am dragging a file from the recycle bin to the desktop.