Its not a "vista" problem you are having, its a internet explorer 7 problem. I tested your drag and drop in the current version of firefox and had no problem. Might want to switch, or revert to IE6
VISTA- PREMIER PROBLEM!!!! I just purchased a new HP Pavillion with all the best goodies... upgraded graphic card - 2 gigs of memory - 130 gig hard drive...Duo Core 1.83GHZ processor. Anyhow, I am trying to copy a picture or cut a picture and paste it into a e-mail message and it will not allow me to paste directly into the body of the message. I am using YAHOO. Never had this problem with XP. Also, I use KODAK to upload and disprese pictures, the process is only a few steps, select all of the photos and drag and drop into OFOTO ( KODAK ) I get an error message then a web browser window opens with the picture in it. I still have XP on my desktop which I had to revert to to complete the simple function of drag and drop... Anyone- please help!!!! Thanks!