First off -- the PUD now lives in the KDE Subversion repository! It's at svn://anonsvn.kde.org/home/kde/trunk/playground/libs/popupdropper -- it builds with CMake and acts as a standalone library. Included in there is a testapp that you can build with qmake that I use for my testing and that you can use to check it out, which I encourage. Amarok now uses the PUD pulled in as a svn:external, which means Amarok is now very easily synced with updates I make to the PUD.
Now, on to the subject line -- the PUD now contains an average of 400% more droppiness. That's because you can now drop on the text of an item instead of just the icon, which means a far larger drop target (and apparently this is how people expected it to behave in the first place).
Next on the agenda is to have text change color on hover so you're sure of what you're dropping onto. Complete with a nice looking fade, of course...