This is in a file originally created in this version and installation of Illustrator CS4.
I have a simple text item, with one character in it. Alternately, I pick a drawn element, doesn't matter.
I have the Selection Tool, i.e. the all black arrow. I'm not touching the keyboard. I click on the object (selected or unselected, doesn't matter), and drag, the cursor changes to the copy object version, and it copies the object. But I want to move it.
Illustrator knows properly what mode my keys are in, it does the right thing if I type in option-e e to get a é.