This seems to be a general Windows-ism - I have seen the same bug in with WTL applications, and even an MS guy who works on the WTL framework cannot track it down. :(
Dialog based applications can't seem to handle drop files that way. Nothing is ever added to the list when items are dropped. The only way I've found to enable drag and drop in a dialog based app is intercept the message in PreTranslateMessage()
