Following my post about AirParrot, my Mac was struck with a bug, see below.
UPDATE (11th March): There is a bug in AirParrot which prevents drag and drop working in any app on your Mac. Their FAQ says this:
I’m having issues with my screensaver activating or drag and drop issues
Unfortunately these issues are related to a bug with Apple’s Nvidia drivers on earlier MacBooks. The only way to remedy this is to remove the AirParrot driver or to disable your screensaver. The following Macs will have this issue when using the External Display driver in AirParrot: MacBookPro5,5 MacBook Pro (13-inch, Mid 2009), NVIDIA GeForce 9400M, MacBookPro5,4 MacBook Pro (15-inch, 2,53 GHz, Mid 2009), NVIDIA GeForce 9400M, MacBookPro5,3 MacBook Pro (15-inch, Mid 2009) NVIDIA GeForce 9600M GT and GeForce 9400M.
- Delete the App
- Go to [HD]\System\Library\Extensions
- Delete AirParrotDriver.kext & APExtFramebuffer.kext