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 I haven't seen this behavoir before, but I placed some moth balls in an area of the yard for pest control and the grackles
were preening themselves with the things. Not good shots, but I think you can tell what the bird is doing.

I have never seen this before either.  But then I have never put mothballs outside either!

I've done that with the mothballs - in an attempt to keep rabbits out of the vegetable garden.  And we also found the grackles the next morning playing with the mothballs and rubbing/preening themselves with them.  Didn't have much effect on the rabbits, though. 

Hmm, that's interesting behavior. I wonder why they do that?