Hello, this conflict with widgets arose with WordPress 3.5, we are close to resolving this issue and hope to complete debugging of our next version, 1.2.0, which will include some improved features as well as bug fixes by the first of February.
Hello, the Widgets issue fix is available immediately for download here at WordPress.org. Please let us know if you are having any further drag and drop issues.
We are also still working on a couple refinements to our upgrade version 1.2.0 which we hope to launch within the next couple weeks.