Why can’t I drag and drop in Explorer any more (re: Windows Server 2003)?

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We have a couple of Windows Server 2003 machines on our network and for some reason I can’t drag-and-drop files on the desktop or anywhere else.

If I right-click and drag it shows the icon on the cursor, but then when I release it I don’t get the right-click menu (ie. copy, paste, etc).

If I left-click and drag a file into a folder I see the file on the cursor but when I release it doesn’t move or copy the file.

What’s going on here?

Solution :

This is the weirdest problem and the weirdest solution. I ran into this same thing today and funny enough simply hitting escape completely fixed it. There’s a great thread with a bunch of info and what not here: http://answers.microsoft.com/en-us/windows/forum/windows_7-windows_programs/windows-explorer-not-working-cant-drag-drop/c49da206-ee9d-4bb8-b49e-88864489070f

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