I'm getting ready to head home, so I was just doing a double-check before heading out.
I noticed that the code you posted was to move picture1.
But in your screen captures, you indicate you want picture2 to be draggable.
So, is that your problem?
Is that what you mean by saying the outline is dragged (picture box 1) and not the picture (picture box 2)?
Are you just referencing the wrong control?
(The more generic code that self adapts to scalemode differences between parent and child could still be useful though).
There Is An Island Of Opportunity In The Middle of Every Difficulty.
Miss That, Though, And You're Pretty Much Doomed.