I had started a question here: WPF drag and drop files onto TreeView from windows explorer but I just discovered this is a totally different problem that what I thought it was.
I have an extremely simple test case.
I was using a treeview but if I use a simple listbox with no code just the following xaml
<StackPanel Orientation="Vertical">
<ListBox Height="312" Background="#FFBDD6FF" AllowDrop="True"/>
</StackPanel>
If I run the project in expression blend and drag a file over the listbox I see the arrow and the little square below it that incdicates you can drag and drop.
If I run the same project in visual studio and drag a file over the listbox I get a black circle with a line through it.
What could be wrong with my computer or code that is causing that?