Nicholas, I did exactly what you recommended and the previously greyed-out (disabled) controls are all no longer disabled or greyed out. This is working perfetly now. So, we see that Microsoft put out a buggy Visual Strudio 2008, and they still haven't fixed it? and, we are at the end of 2009? What's up with that guys?
Cecil
>Then I found reset command: Tools -> Import and Export Settings... -> Reset all Settings. I did that and at the same time also reseted window layout. I am not sure if the latter has anything to do with this, but now drag and drop is working.