Why can I no longer drag clips?

I can no longer drag clips from the viewer to the canvas or timeline. When I the clip seems to disappear behind the canvas or timeline. "Show Overlay" is checked. The Edit Overlay box, which used to appear in the canvas, no longer appears. I use Final Cut Pro 7. I've edited a feature with no problem, so I'm assuming something has gotten switched off? Thanks.

Have you tried trashing your preferences? That is the usual first step when FCP begins to act in unexpected ways.
You can download Preference Manager (free) from Digital Rebellion and it will do it for you:
http://www.digitalrebellion.com/prefman/
Your preferences will be reset to default settings the next time you launch FCP.
If you want to do it all manually:
Final Cut Pro 7: Troubleshooting Basics - Apple Support
MtD

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