Lost my drag and drop

Hi there. I updated to itunes 10.5 on Lion ysterday, and I seem to have hit a snag. I can drag and drop everywhere EXCEPT in itunes, which is very irritating (I sort of want to throw my computer out the window). I have logged out and in, restarted, and repaired disk permissions, which I saw suggested before, but to no effect. This seems to be an itunes only problem.

Any suggestions?