You should see a white/alpha box which means you're try to nest in a different parent somewhere. If you mouse over a container and still see a red "x", then move out and move in again. Sometimes it doesn't pick up on the dragEnter event.
anyway, I apologize for any confusion, I'll put out a video sometime today which will cover how to use it. Doing drag/drop opperations in Flex2 isn't as simple as it used to be, but the DragManager is awesome. Let's just say, it's fairly complex how it's handled in Flexible ;)
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[ JPG ]
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