I added basic file drag drop to a Silverlight 4 OOB app and found it always gave the no-drop cursor.
If I turn off OOB mode on the same app and found drag drop of files works fine in the browser.
Does anyone know why the requirements for file drag-drop may be different in OOB?
Followup:
I have now also tried the simple drag drop app from here: http://www.wintellect.com/CS/blogs/jprosise/archive/2009/11/26/silverlight-4-s-new-drag-and-drop-support.aspx and when I switch it to OOB mode it also fails to drag drop.
*Note: Am am use the current RC of Silverlight 5, so it is probably a compatibility bug. I notice that half the new features on the Telerik Silverlight Demo site do not loaded under SL5 eother.