Drag and Drop only puts image on new IE Tab

Hello there and thanks for looking....
I'm trying to use the jquery UI drag and drop functionality.
I've downloaded jquery 1.2.6 as well as the UI personalized bundle.
When I try to drag an image into a <div>, a new tab opens up in IE 7
instead of dropping into the 'droppable' <div> I've defined.
Anyone seen this odd behavior, or have a workaround?
Thanks!