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?
Is it possible that you are running Visual Studio as Administrator and Expression Blend normally?