Thanks again Jim, as I said I am already using Ole Drag and Drop (although using data). However this method only shows the user a cursor as they are dragging, I want them to actually see the image moving or being dragged (exactly what you see when building a VFP form and you drag objects around it).
Also I would have thought that the source would more simply be the object (the image object, not the file image file), after all we are doing is changing the Image.Top and Image.Left with their new positions Xcoord and Ycoord. Looking at it another way the user moves the image box to a new position on the screen and we give the image the new coordinates. Bingo it is in the new position. My only concern is how to show it doing this.
Anyway thinking while I am writing this maybe I simply change the position of the image in the dragover event so it is constantly redrawing while it is being dragged, then set the Image.Top and Image.Left when the drop occurs.
Much simpler if it works.
J