Dim nStartPos As Point
    Dim nDragPos As Point
 
  Private Sub Panel1_MouseDown(sender As Object, e As _
    System.Windows.Forms.MouseEventArgs) Handles Panel1.MouseDown
        If e.Button = Windows.Forms.MouseButtons.Left Then
            nStartPos = Panel1.Location
            nDragPos = Panel1.PointToScreen(New Point(e.X, e.Y))
        End If
    End Sub
 
    Private Sub Panel1_MouseMove(sender As Object, e As _
      System.Windows.Forms.MouseEventArgs) Handles Panel1.MouseMove
        If e.Button = Windows.Forms.MouseButtons.Left Then
            If Panel1.Bounds.IntersectsWith(Panel2.Bounds) Then
            Else
                Dim nCurPos As Point = Panel1.PointToScreen(New Point(e.X, e.Y))
                Dim NewPos As New Point(nStartPos.X + nCurPos.X - nDragPos.X, _
                  nStartPos.Y + nCurPos.Y - nDragPos.Y)
                If NewPos.X < 1 Then NewPos.X = 1
                If NewPos.X > 599 Then NewPos.X = 599
                If NewPos.Y < 1 Then NewPos.Y = 1
                If NewPos.Y > 367 Then NewPos.Y = 367
                Panel1.Location = NewPos
            End If
 
        End If
    End Sub

MFG Gizmo