Closed Issue: Drag Drop not working in VS2008 Team Suite [16262]

I downloaded Release 20229 of Ajax control toolkit. I added the tools in my toolbox. Now the VS designer is not allowing me to drag drop controls from toolbox to the designer surface. I can drag drop controls in source view. Any ideas? I even tried using version 10920 without any success.
Comments: Starting with v15.1 of Ajax Control Toolkit, we support Visual Studio of version 2010 and higher. In modern versions of Visual Studio, the described problem does not exist.