Ubuntu-Mate 14.04 64x, nVidia GT-620
Blender 2.77a from page

This issue was discovered in a file downloaded from http://www.blendswap.com/blends/view/63269. I tried to reproduce it with simple objects, but it didn't work. I only cleaned up a bit the file to be more understandable.

This pine consists in:

• A branch
  • Mesh: Needles.Base.master
  • In Groups: Needles.Base and Needles.FullBase and Pinetree
  • Layer 20
• dupli-branches:
  • Dupligroup of Needles.Base
  • In groups Needles.FullBase and Pinetree
  • Layer 20
• dupli-dupli-branches:
  • Dupligroup of Needles.FullBase
  • In groups Pinetree
  • Layer 20
• Tree
  • Dupligroup of Pinetree
  • Layer 1

The branch ("mesh") can be moved, also the first dupli ("1º dupli"). But branches-dupli-dupli ("2º dupli") can't.

Also, the tree (layer 1) can be moved.