Thank you it works
Glad to help.
One thing to keep in mind. Using this simple technique, the picturebox is placed with its top-left corner at the cursor position. This may be acceptable depending on the cirumstances, but personally I find the result looks fairly ugly - when you drop the box, it usually jumps up and to the left.
You can get around this by tracking the position on the picturebox at which it was "grabbed" (um... in the picturebox MouseDown event, I think) and then adjusting the location accordingly when it is dropped.