Is running your application or Visual Studio that hosts the app under administrative privilege?
If that's the case, the Windows prevents the drag drop operation from happening. In Windows 7 or Vista, an application with a lower security privilege (your Windows Explorer with normal user privilege) C Annot send data to another one (your app or Visual Studio with administrative privilege) with a higher security privilege.
Try to do one of the followings:
Run your Visual Studio without administrative privilege. Run your application outside Visual Studio without administrative privilege. Enable and long on to the Administrator account in the OS. In this case, both your Windows Explorer and your Visual Studio would have administrative privileges.
Be aware of the Windows vista/windows 7 security rights-if You is running Visual Studio as Administrator, you won't be a ble to drag files from a Non-administrator Explorer window into the your program when you run it from within Visual Studio. The drag related events would not even fire! I Hope this helps somebody else out there not waste hours of their life ...
This is because of the security permissions restrictions on Windows 7, which prevents drag and drop events from being fired, the solution is to log on with a administrator user, or the launch permission for Visual Studio is set to non-administrators.
Windows 7, developing WPF applications with Visual Studio, implementing drag-and-drop files from Windows Explorer to the application, always displaying the "can't drag" symbol problem solution