Using WP 2.7, Theme Called "Sea," IE 8.0 Beta, XP Professional SP 4.
I have three sidebars, and I want to add a widget to Sidebar 2. I click on the dropdown menu and select Sidebar 2, and then select the Archive widget. When it activates, WP places the widget on Sidebar 1.
Rinse and repeat. Same result.
I've had this problem since moving to 2.7 Beta and hoped it would be fixed by now, but I don't know if you are aware of the issue.