Today I went into a project that I'd worked on last night, and I could no longer drag components on the form, although I could resize them.
So I restarted Lazarus and it still had the problem. Then I created a new project and even a single button on a new form could not be dragged.
I searched and nobody else seemed to have encountered the problem.
So I decided to restart windows 7 and let it install 7 updates.
After that my dragging returned to normal.
I'm really just posting this in case other people have the same issue.
Hil