Can't drag and drop on desktop and I've tried all suggestions from previous threads

Yesterday I found that I can't drag and drop any files on my desktop. I get the white circle with a line through it when I try to drag anything. I can drag off of my desktop to my HD and to the trash but I can't drag anything back.

I've read all of the previous threads about it and have tried all of the poetntail fixes including:

Creating a new user account and switching back and forth

Sleep / Wake

Relaunching Finder

Checking the Dragging option in Universal Access

Checking all of my settings in prefrences

(I don't have Air Display, Airparrot or any of the other listed problematic 3rd party programs)

I even reinstalled Lion and the problem still exists

Anybody have any other pointers, or should I head into the Genius Bar?