Currently Being ModeratedOct 5, 2011 12:40 PM (in response to NGMmac)
I restarted and the problem resolved itself. That's going to be a work around for others experiencing the issue but I'm not fully satisfied with that being the case. This only confirms there was some kind of bug in play and that the OS is vulnerable to these kind of issues. I'm hopefull Apple will look into this as one of Mac OS X's strongpoints is supposed to be its reliability.
Currently Being ModeratedOct 15, 2011 5:18 AM (in response to NGMmac)
I also had the same problem, click and drag just stopped working for me and I have the latest OSX Lion update.
For me I just logged out and back in and it started working again. Like yourself, I am not impressed with this bug either.