Just place the image in a movie clip and make it dragable.
Drop this code on the first frame of the movieClip along with the image and it should work

assuming your using MX - which I seem to remember you were.
this.onPress = function () {
this.startDrag(true);
}
this.onRelease = function (){
this.stopDrag();
}
And who says we aren't helpfull
