I just wanted to say that I've noticed and like the snapping a lot. Actually, it made my life a lot easier recently when setting up our fancy new video wall at work (I'm licensing the office's copy of MC just as soon as I get that machine online).
I voted for Matt's way (the current way) because it matches how other windows applications work when snapping is turned on. For example: Photoshop, Illustrator, Freehand, and most other layout/design applications all work just like MC is now. I do feel that you should probably add an Options --> General --> Interface --> Snapping option (just on/off would work for most I suspect). Some people just hate snapping all the time, and sometimes it gets in the way for specific purposes.
Jim's way would annoy me seriously, I suspect! It would snap to somewhere it "wasn't" after I let go of the mouse button?? This doesn't seem right at all! When you let go, it is to "drop" the item where it is. It shouldn't "drop" to somewhere else, for sure!
EDIT: If any change was made, I would reduce somewhat the "snap border" area. Right now it is a pretty big area where it "grabs" the window and snaps it over to the edge. I think if you cut it in half from what it is now, it'd probably go a long way towards appeasing Jim's feelings of "jumpiness".
PS. I'm waiting for my dreams now, Matt...