Can't drag window about opentyrian HOT 9 CLOSED

I have to struggle with the same bug when using DOSBox, so I'm heavily inclined 
to say this is a SDL bug when using mouse locking.

Really? I never had any such issue when using DOSBox...

I was also able to alt-tab in and out properly, as the mouse would only lock 
once I clicked into the window again.

I agree, this is issue with their mouse-locking piece of code. Guys, instead of 
insta-locking mouse when window active  check if mouse got released before and 
lock it ONLY when player clicks on sdl surface. Better yet add check menu 
active/game active to switch between system absolute coordinates and relative 
mid-screen lock coordinates which will serve as controls when game is active.

Please retest latest (2013-08-26) build.

Will do, hopefully tomorrow, and report back.

I'm assuming this is fixed since I've heard nothing more.

Confirmed working in latest stable release, 2.1.20130907