We use Gallery 2.3.1 as a codebase for our hosting service at https://pixi.me/ - we've recently enabled the use of the built-in WebDav feature (doesn't require Apache's mod_dav) to allow our users to upload/download files on the fly.
Unfortunately, using Cyberduck 4.2 on OS X Lion and Microsoft Windows 7 - the WebDAV HTTP header (content-type) based mime-type detection fails. Gallery 2 depends on the content-type header to determine the mime-type of the file.
With this failure, thumbnails will not be generated, ZIP files won't be extracted, etc.. Using cURL works (OS X, FreeBSD, etc..) just fine, and so does Transmit. BitKenix works also (Windows).
I would like to recommend Cyberduck (I use it myself) to our user base, but this issue is just getting in the way.
Please advise, thank you. If you need a test site, let me know.