The only time I fish dries downstream is if I can't get to the fish any other way. The one caveat to that is if I've been working upstream and a large fish starts rising downstream of me. Then all bets are off.
I've actaully had success standing directly over a fish and dropping my fly into the water at my feet and caught trout. It doesn't happen often but it does work.
Source: http://www.paflyfish.com/modules/newbb/viewtopic.php?topic_id=15975&forum=7
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