*BUMP*
i have a 13" Macbook Pro 5,5 (2.53 GHz Intel Core 2 Duo, 4 GB 1067 MHz DDR, NVIDIA GeForce 9400M 256 MB, Mac OS X Lion 10.7.3 (11D50)) and have the same problem. It happens during the animation of the icon as it switches its orientation, format, etc. This is a new feature of Finder and apparently they have bugs in the graphics accelleration code (my Mac is one of those with noisey GPUs where you can hear high pitched noises from the left beneath the keyboard). The animation doesn't make much sense sometimes because the text wrapping changes depending on where the icon is placed. In fact, sometimes the animation is pointless because the icon changes into the same thing it was already. The glitches look like video buffer junk (small multi-colored rectangles with maybe ASCII-like junk?? it's too fast to really see) and flashes of the icons already on the desktop (flashing randomly around on the desktop) and the one being dragged. It's quite distracting.
EDIT: i just upgraded to Lion a couple days ago. Never had problems with Snow Leopard.
(you gotta be kidding me... this forum disables default Safari context menus and spell check? this is the APPLE forum, so you'd think it would behave with Safari)
Message was edited: added detail.