Cannot move mail by dragging to sub-folder in Outlook 2003

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I can no longer drag emails from my inbox to my individual mail folders within Outlook 2003 (with Win XP Pro.) I can highlight them by clicking on them, but the email never moves. I cannot even drag them up or down in the inbox. When I try this, I see the "slash" symbol for a brief second, but it goes away. It is like a settings has been changed, but this was working fine yesterday. I have tried draging with old and new email - neither works. The only thing I can do is right click, and choose "Move To Folder..."
 
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