I've had a very quick look at your first question. I think that you need to tackle the problem in a slightly different way.
The Form doesn't recognise any mousemove or mousedown events when obstructed by controls. It might be better to draw directly on the form.
Have a look at my IconEditor example which can be found here
http://www.basic4ppc.com/forum/showt...p?t=585&page=2 (bottom of second page), its nowhere near finished but might help you with what you are trying to achieve.
Regards,
RandomCoder