IE9 Drag and Drop

Since upgrading local Windows 7 64 bit workstations to IE9 we are no longer able to utilise the Drag and Drop features correctly.
Scenario 1: If I attempt to Drag a file from the local workstation file system onto a page, IE9 provides a prompt to either Open/Save or attempts to open the document (jpg, pdf) if a support addin is present.

Scenario 2: If I attempt to drag a macro around while editing a page it will prompt me to install Google Gears. If I go ahead with the install of Google Gears this will allow me to drag macros around the page however File drag and drop will still not work.

I was under the impression that IE9 could handle drag and drop of local files and page content given its (so called) support for HTML5 and no longer required Google Gears? Am I correct?

If it should all work, is there anything in my IE settings that's preventing me from perporming these operations?
I've confirmed that

thank you

Tim