>I got it, very simple all I had to do was use the plain VFP Dragdrop feature, set Dragmode to 1 (Automatic) then in the form DragDrop event set these values.
>Thisform.Image1.Left = nXcoord
>Thisform.Image1.Top = nYcoord
>All I have to do now is to figure the calculation of the cursor position in relation to Image1.Left and Image1.Top so the Image lands in the correct place. Redrawing the image in the Dragover event is not succesful, too slow, but I can live with that
>J

You can do it using the VFP drag and drop stuff, but the OLE stuff is much more flexible and I find easier to use.