I looked into this a little. It seems that when you drag an image from MS Word, it is in fact a linked or embedded OLE Object. The data object contains a CF_EMBEDDEDOBJECT format that needs to be extracted using "standard OLE techniques". I've never done this before, sorry I can't really help you with it. However, this does explain why you are able to drag and drop images from IE to Word and Win Forms, but not Word to Win Forms.
--EricDV Sig--------- Some problems are so complex that you have to be highly intelligent and well informed just to be undecided about them. - Laurence J. Peters