tool palette problem

Hi all
I have just upgraded to LT 2004 and Windows XP Pro
When trying to drag and drop items from designcentre to tool palette, blocks
are no problem but nothing else works ie when I drag dimstyle or textstyle or linetype etc a barred circle appears over the tool palette when dragged over it.
Similarly, a right click on the blocks folder gives an option to create tool palette: this option is not shown for any other folder
Many thanks for any help
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