Can you upload both the UI log and VMX log from a session in which you attempted (but failed) a drag and drop as well as a (successful) copypaste. Thanks!

I believe you already uploaded the .vmx configuration file.

So, from the VM's working directory I only need the vmware*.log files. There are four of them (feel free to include all four in the attachment).
The UI log, on Windows 7, is located at %TEMPT%\vmware-<username>\.
Try and find a log file for a UI session during which you attempted the drag and drop (and copy paste). You can use the About dialog (in Help > About) to see the location of the UI log file for a given UI session.

Thanks.

Can you try to enable guest tools logging and upload the log files? This log file would be much helpful for DnD issue.

To do that, run the VM, and open:
XP: C:\Documents and Settings\All Users\Application Data\VMware\VMware Tools
Vista/Win7: C:\Users\All Users\VMware\VMware Tools

Then open the tools.conf file.

Add two entries:
log = "TRUE"
log.file = "C:\vmtools.log"

Then log out and log back in to your VM Wait for vmwareuser.exe to start using 100% of your cpu and upload the resulting log
files. There should be one at c:\vmtools.log and another one
at c:\vmtools.log.<process id> where process id is just a number.

Once you are done, make sure to turn off logging by removing the two entries because they can take up a lot of space over time.