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Would it be possible for Appetizer to support drag and drop of files onto an icon, and launch the selected icon with the file as a parameter?

It's already doing that. If it doesn't work for you, please let me know which application and which file you've tried.

I've tested Notepad++,, Songbird and Firefox. All applications will open when a file is dragged onto them, but none of them have loaded the file.

Right, there's apparently a bug. It was working for me the other day with Sumatra PDF but not anymore (not sure why). Are you using the standard versions of these applications or the PortableApps versions?

I'm using the standard locally installed versions

Just found this program, using the portable 1.3.2 version.
The drag and drop doesn't work for me.

Have tried, .doc files to openoffice and .pdf to sumatra. Both opens the program, but doesn't open the actual file.