Right-click start, properties, Start Menu tab, customize, advanced tab, check "enable
dragging and dropping."
if that doesn't work or is already checked, if you happen to have a Dell uninstall the Dell Media Experience from Add/Remove Programs.
See the following applys:
Actions such as search and drag and drop do not work because the default access permissions have been changed in the Dcomcnfg.exe tool
I tried another mouse, wired, and same thing. However, what I noticed is that I CAN DnD until I try to drag a mov file (13meg)...at that point it stops; this happens with both the wired and cordles mouse. If I go back to a regular file it still does not work. I did install new drivers in the begining.