The shortcut you dragged may have been accidentally dropped into another shortcut in the Start menu.
The little arrow denotes an "additional or new" shortcut. "Replacing the one that is already there" should not be a problem. In fact "Replacing the one that is already there" will probably cause the one "that is already there" to be moved to the Recycle Bin.
You can use Search for files and folders to find the applications .exe file and create a shortcut from this.
When selecting a program to Open with, if the desired program is not in the list then click Browse and search for it.
The easiest way to undo the problem is System Restore (assuming a suitable Restore Point is available).
Hope this helps.
Using windows XP I was creating shortcuts on my desktop by dragging and dropping. Instead of selecting the ''copy'' option on the desktop, I must have selected ''move'' because now the application (MS Powerpoint)has been removed from the start menu. Now its not available in the start menu to other user profiles either. Some one sent me a .pps file, Windows did not know what app to use to open it. I choose to open the .pps with an application I select but, Powerpoint was not in the list of options. How do I get Powerpoint back into the start menu and available to all users? I tried dragging it back to the start menu but, I get a message asking me if I want to replace the powerpoint file that is already there. Strangly, the power point icon I created has the little arrow that usually notes a short cut.