>I finally was able, using Bonnie's code, to get my drag & drop working. I still have some problems though.
>
>I placed 2 panels on a form. The panel to be dragged is called PickedUpControl and the target is called TargetArea:
>
>

>public partial class Form1 : Form
>{
>    Cursor DefaultCursor;
>
>    public Form1()
>    {
>        InitializeComponent();
>        DefaultCursor = this.Cursor;
>    }
>
>    private void PickedUpControl_MouseDown(object sender, MouseEventArgs e)
>    {
>        Cursor oCursor = new Cursor(@"C:\Projects\Samples\DragDrop\hpoint.cur");
>        this.Cursor = oCursor;
>
>        this.PickedUpControl.DoDragDrop(sender, DragDropEffects.Copy);
>    }
>
>    private void TargetArea_DragEnter(object sender, DragEventArgs e)
>    {
>        e.Effect = DragDropEffects.Copy;
>    }
>
>    private void TargetArea_DragDrop(object sender, DragEventArgs e)
>    {
>        this.TargetArea.Controls.Add(this.PickedUpControl);
>
>        Point xy = this.TargetArea.PointToClient(new Point(e.X, e.Y));
>        this.PickedUpControl.Location = xy;
>    }
>
>    private void PickedUpControl_GiveFeedback(object sender, GiveFeedbackEventArgs e)
>    {
>        e.UseDefaultCursors = false;
>    }
>
>    private void PickedUpControl_DragLeave(object sender, EventArgs e)
>    {
>        this.Cursor = DefaultCursor;
>    }
>}
>

>
>1). I can't seem to get the cursor to reset to default after the drag/drop is done.
>2) The dragged pane is removed and placed in the target. How do I copy it instead?

If you want a copy you have to MAKE a copy - you can't site the same object in two locations.

From Help:
A Control can only be assigned to one Control..::.ControlCollection at a time. If the Control is already a child of another control it is removed from that control before it is added to another control.

Dunno about the cursor......