John,

Please read the white paper on my site. It discusses the very thing you are asking about. You do have drop target, it is the form itself and there is data, the image file. In the form's OLEDrop you can read the data, see that it is an image file, then use the form's addobject method to add an image object right where the drop occurred and set the image file as the data source for the image object. Youcan even let the image file be dropped on a textbox and then set the textbox.value to be the image file name so you display the file name in the textbox, so you can have the drop behavior be different depending on where it is dropped. You can control what the drag icon is during the drag and set it to a no drop icon whenever it is over a place where it cannot be dropped., You can allow the dragged data be a whole list of image filesd and create multiple image obejct's from the drop on the form, one for each file.

Read the white paper and you may be very surprised at what you can do and how really easy it is to do it.

Here's a direct link to the paper: http://www.jamesbooth.com/OLEDD.htm