Which Curl version are you using (all three numbers please, i.e. 5.0.4)? Which OS? Do you know if you are using anti-aliasing? It sounds like you might have found a bug in Curl.

Which version of Curl are you using? Did you add the support for ICO MIME type? If not, then you should have seen an "Invalid MIME Type" error message.

Is it possible that in your code you are resetting the dragee to some other object?

Use a simpler example like below and see if you still see the problem. Note that you will have to replace "your-url" with the url of the image file you want to use.

{Frame
    height = 2in, width = 2in,
    background = "lime",
    dragee =
        {ImageDragee
                 drag-graphic =
                     {Frame
                         height = 40px,
                         width = 40px,
                           background = {FillPattern.from-url your-url}
                     }
        }
}
 

If you see this problem again you can send your code and I will try to help you out with it. Look at all the places where you are setting the dragee and see what graphical objects you are setting it with. Setting it to null for a Graphic means that the object is not drag-able. Search for places where you are setting the dragee to a non-null value.