Problems placing things on terrain surface

I read that holding CTRL SHIFT while dragging an object from its center square (like crate, or character controller) will make it snap to the surface so you can quickly place things on terrain - but in trying to place items, this doesn't seem to help at all because items are always left hanging above surface - presumably because CTRL SHIFT snaps their ?HotPoint / Pivot Point / ?or center point to the surface.

With object selected, you see its position and scale in the inspector, but the Scale and Position don't seem to be in identical units (because my Crate with scale of 3 has y position of -2.44)

I've tried with Local vs Global tabs set and Center vs Pivot Point and do get some different results.

Can anyone outline the correct way for quickly positioning gameObjects on surface of their terrain in Unity 3.1?

Position your terrain at 0,0,0...

Move all the objects you want into the scene...

Put all the objects at 0,0,0...

But for me, when I drag an object on to the terrain, it snaps to where it is, I don't need to hold any button... Try on a cube, if you drag an object in the scene, does it snap to the faces, or no?