Index: lams_central/src/flash/org/lamsfoundation/lams/authoring/tk/ToolkitView.as
===================================================================
diff -u -re3602322ac4f758f903926ea043fc7e84e9b756f -rc769bf32a96245c9403c1406826809a63a488eb4
--- lams_central/src/flash/org/lamsfoundation/lams/authoring/tk/ToolkitView.as	(.../ToolkitView.as)	(revision e3602322ac4f758f903926ea043fc7e84e9b756f)
+++ lams_central/src/flash/org/lamsfoundation/lams/authoring/tk/ToolkitView.as	(.../ToolkitView.as)	(revision c769bf32a96245c9403c1406826809a63a488eb4)
@@ -384,8 +384,8 @@
 		//Debugger.log('_dragging:'+_dragging,4,'dragIcon','TemplateActivity');
 		if(_dragging){
 			dragIcon_mc._visible = true;
-			dragIcon_mc._x = Application.cursor._xmouse;
-			dragIcon_mc._y = Application.cursor._ymouse;
+			dragIcon_mc._x = Application.cursor._xmouse-(dragIcon_mc._width/2);
+			dragIcon_mc._y = Application.cursor._ymouse-(dragIcon_mc._height/2);
 		}
 		
 	}