1. Starting with a blank document, create a few blank lines by pressing RETURN.
2. At the top of the page, insert a small picture graphic using Insert->Picture->From file
3. Further down the page, create three graphics from the Basic Shapes as found in the Drawing Toolbar. Place the shapes next to each other.
4. Click the first basic shape, then hold down SHIFT and select the second. The basic shapes are deselected and the inserted picture is selected instead.
5. To prove the inserted picture is the problem, select the inserted picture, press DELETE to remove it, select the first basic shape, hold down SHIFT and now you will be able to select the second and third basic shapes [as if you wanted to group them].
confirmed on linux with 3.5.0beta2 - just as described.
confirmed on Win XP (32bit) with LO 3.4.4
Confirmed on Windows 7/64 with LO 3.5.3
*** This bug has been marked as a duplicate of bug 37960 ***