O very strange, finally got it when I switched to "View items as a list"
vs "View items as a grid of icons". Sweet, Thanks!

** Also affects: unity (Ubuntu)
   Importance: Undecided
       Status: New

** Changed in: unity
       Status: Incomplete => Triaged

** Changed in: unity (Ubuntu)
       Status: New => Triaged

** Changed in: unity (Ubuntu)
   Importance: Undecided => Low

** Changed in: unity
   Importance: Undecided => Low

** Changed in: unity
    Milestone: None => 7.0.1

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https://bugs.launchpad.net/bugs/1171917

Title:
  Unity stays "gray'd out" after canceling a drag'n'drop action

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