Drag and drop bugged

Just a guess, here, but is it possible you have less an optimal amount of free space on hard drive? Perhaps some larger caches (such as Safari, fonts, sound files or video, or mail attachments) that have not been cleaned out lately?

A Time Machine backup in progress sometimes slows things down. Or simply too many processes running concurrently.

Finally, I have noted that every major OS update seems to speed up after a few restarts, as system caches get updated.

Just another thought: did you reset PRAM?

I saw this same problem in the GM on the exact same hardware you have. I had to revert back to Snow Leopard. As soon as they get it fixed, I'll gladly grab it through the App Store.

Do me a favor, try creating a new user on Lion and see if that resolves the issue.

The more I read here, the more I think I'll clean out caches and stuff with OnyX before installing Lion. (I have downloaded it but not installed yet.)

The latest version of OnyX is 2.2.9, uploaded to CNET June 27, 2011. But there is a beta version 2.4.0b1 for Lion.

CAUTION: OnyX is a very powerful and useful tool, but also capable of really messing up one's system if misused, so if you're not absolutely confident that you know what a particular function will do, don't do it. I have been using Macs since 1984, and there are still functions of OnyX I won't use. As Dirty Harry says, "A man's gotta know his limitations."

I am having the same issue.

I first noticed it when I tried to remove some icons from the dock. The icon would become translucent with the poof icon over top of it but then it wouldn't release/drop when I let go of the icon. It remained stuck on my cursor until I hit one of the toolbar options. The problem is worse with files in finder, it seems that if I hit some of the Fkeys, only then will it decide to release/drop off of my cursor and back to where it was orignially.

my main form of work deals with dragging and dropping files into an FTP server as well as other tasks that require me to move large amounts of files at once. This bug has crippled me from doing any of that.

This official release is so buggy it makes me wonder who was actually testing it before it's release. Stay away from this if you actually do any work on your computer other then browsing the internet.

late 2008 uniMBP 5,1 2.53gHz 64bit kernel 8gb ram Lion 10.7

Same here with a Macbook unibody late 2008, 2.4ghz, 2Gb RAM, Lion 10.7. Still looking for a permanent solution but putting the mac to sleep and waking it up fixes it until next reboot.

I've got the fix, at least for me. If you have any software using DisplayLink, which is a kind of display driver i think, you have these issues. For me it was DisplayPad, which I can't say for sure but highly suspect uses DisplayLink. In order to fix this you MUST delete the displaypad extensions from /System/Library/Extensions/ there are two of them conveiently named DisplayPadDriver.kext and DisplayPadFrameBuffer.kext That should do it. 🙂

So I'v gotten this fixed. For me, it was because I was using an application called DisplayLink which lets me hook up a third monitor via usb. Uninstalling DisplayLink's latest beta 2 release has gotten rid of all the buggy sticky icon to cursor as well as gotten rid of this bug I was expereince where my login screen was blank except for the grey fabric background.

read more about it here: http://displaylink.org/forum/showthread.php?t=935

To uninstall displaylink I searched spotlight for uninstall displaylink and used the app given to uninstall it from the system.

Note: Darkerix, don't mean to steal your thunder as I was typing this I saw you said the same thing, I'll confirm this to be true for me.

Sorry apple specialist for making you scratch your heads so hard over the phone.

you know you can turn that off right?

+1 on issue. Icon get stuck to my mouse cursor while dragging and I can't drop the file. I am also using DisplayLink 1.7 beta 3 which is actually the latest release compatible with Lion.

No more issue since I uninstalled Display Link software 10 days ago and I'm using my MBP for several hours every day.

If this issue appears after you installed AirDisplay, do the following three steps.

1. Delete the AirDisplay app from applications.

2. Go to /System/Library/Extensions/ and delete the following two .kext

AVFrameBuffer.kext

AVVideoCard.kext

3. Restart computer.