i own 2 servers (960/c and 3500/e)
With both, public access and public drop, addition of packages is ok
installation of packages with xanadu-client is ok too.

Issue is with group restriction
Access from controller is ok but drag-drop is not!
Even if one is in the right and active group, servers always reply with
[00:14] xPriv:0: Xanadu Package Server 1.1.2 xPriv:0
xanadu/960c package server
[00:14] xPriv:0: To add a package to this server, you must have MyGroup set as your active group.
or
[00:16] xPRIV:0: Xanadu Package Server 1.1.4 xPRIV:0
private server
[00:16] xPRIV:0: To add a package to this server, you must have MyGroup set as your active group.
(MyGroup has been changed for this report but link actually works in the messages)

Tried to reset many times but this does not help
changing public drop setting does not help too.