thanks for the reply. I believe Windows must be the case. What OS are you running? I had tried to get it running on Ubuntu Linux but could not get it configured correctly. I have not tried it on OSX but that is where I eventually want the project to run. Perhaps I can try this on Windows XP.

What is weird is that I had my friend, who is also running Windows 7, run the pre-compiled Dropsite demo from the qt\examples\draganddrop\dropsite\release folder. He was able to drag and drop files from either his hard drive or from a browser and they both worked fine. But then he opened the dropsite.pro in QtCreator and recompiled it. When he tried to run it again it did exactly what is happening to me. Why would it be that it ran fine but then upon recompile it does not work correctly? Is it some kind of build issue with Qt and Windows 7? Please let me know. Thanks!