Erik,

Yes you can process datatype 15 or CF_FILES. Here's some code from a OLEDragOver event;

LPARAMETERS oDataObject, nEffect, nButton, nShift, nXCoord, nYCoord, nState

IF nState == 0 && Drag Enter
   IF oDataObject.GetFormat( 15 ) && Files
	* I can handle drops of files
	This.OLEDropHasData = 1
	This.OLEDropEffects = 1
   ENDCASE

ENDIF

And the drag and drop event

LPARAMETERS oDataObject, nEffect, nButton, nShift, nXCoord, nYCoord

LOCAL aFiles[ 1 ], nFiles, i, cExt
IF  oDataObject.GetFormat( 15 ) 
   * I can handle file data
   * Get the file data into an array 
   IF oDataObject.GetData( 15, @aFiles )
	* If we got any set the count
	nFiles = alen( aFiles, 1 ) 
   ELSE
	* Set the count to 0
	nFiles = 0
   ENDIF
   * Check each of the files
   FOR i = 1 to nFiles
	* Get the extension
	cExt = Upper( JustExt( aFiles[ i ] ))
	IF ( cExt == "BMP" ) or ( cExt == "JPG" ) or ( cExt == "GIF" )
		* If it is a file we can handle
		* Hide the label
		This.lblDropSpace.Visible = .F.
		* Set the picture property
		This.Picture = aFiles[ i ]
		* Draw he container
		THIS.Draw
		* Pause for a few seconds in case there was more than one file
		INKEY(2,"H")
	ENDIF
   ENDFOR
   * Set the copy only attribute
   nEffect = 1
   * stop the default action of this drag and drop
   NODEFAULT
ENDIF