Hi. I'm writing a custom control and I want to be able to click and drag items in it, but have them be just a dotted outline as they are dragged along. This behavior is seen in Photoshop when clicking and dragging layers (See image below displaying this behavior). I tried using a Panel with a transparent background but I found all this means is that it inherits the background color from its parent. I also tried putting code in the paint event, but that paints onto the user control which is not seen because it is covered by other user controls.
Image of a layer being dragged to a new position in Photoshop: