When dragging and dropping files in Lion Apple Magic Mouse will not "let go" of file even after button is released

When selecting file or drive icon or text, the mouse will not release the item.  Pressing esc will release item but only back to original location.

I presume drag lock isn't checked in System Preferences, but it sounds like maybe it's been set elsewhere, like by a corrupt prefs file? Can some OS X guru provide a Terminal command to disable drag lock just to be sure?
I have a problem, also on a new MBP 2010 i7 /10.6.4, that isn't the same but might be related. The time required for the system to "release" an item selected by the pointer is exceptionally long. And if I try to click elsewhere before the pointer has been released, it only serves to extend the time. It's annoying and reduces productivity.
Speed settings in Sys Prefs has no effect, and no other hardware is attached, using just the trackpad.
I hope there's a setting that can be changed via Terminal; can anyone suggest the right terminology for the parameter(s) that need to change?

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