It appears the latest round (feb 2005) of security updates has somehow broken drag and drop capabilities when working with a remote drive share.

For example, if you map a remote drive using \\ipaddress\sharename you can no longer drag and drop from a local folder into a folder on that remote share, you can use the cut/paste to move files there but  drag and drop shows the circle with a line thru it meaning you can't do that.

If you map the remote drive using \\servername\sharename then it does work

If you map the remote drive using \\servername.domain.com\sharename it is again broken.

The workaround for this last case where you have to get to a machine over the internet is pretty simple. Edit your HOSTS and LMHOSTS files so you have a dotless name in it that points to the IP address

 

Hosts and lmhosts files windows\system32\drivers\etc would get an entry something like:

1.1.1.1   servername

typically you use the fully qualified domain name but since it contains dots that won't work so try it this way then map the drive as \\servername\sharename and see if it works for you.

the solution was emailed to me by Bill Campe:

I added a section to my logon script, and put my local subnet range into Internet Explorer as an entry in the 'Intranet Zones' section. Problem solved, at least for LAN drive/share mappings.

Under HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings\ZoneMap\Ranges

Add another KEY and call it whatever (we are the Information Systems department so we called it Range_IS)

Add two values to the new range:
    Add a DWORD value with a Value name of: *
    Make the Value data be: 1

    Add a REG_SZ value with a Value name of: :Range
    Make the Value data be: the range of IP subnets on your LAN (see below)

For example: suppose your network is 123.123.16.x through 123.123.31.x

The value data would be 123.123.16-31.*

This has to be implemented via a logon script, since the setting is user-specific. You will notice that when you then open a local network drive that is mapped via IP, instead of saying "Internet' in the bottom right border, it will say 'Local Intranet' and you will be able to drag/drop. Once you make the change, the user will have to log off/on for it to work.

Bill also emailed me the following later:

Open 'My Computer' and from the 'Tools' pull-down, select 'Folder Options' Under the 'Web View' section, do you have "Use Windows classic folders" checked?

I had a user that could not drag and drop to an ftp site in IE, and that was the cause of her problem.  Changing the setting to "Enable Web content in folders" fixed the problem.