Thanks for the quick response.
I tested the flash uploader in firefox chrome and ie9. None work.
Basically it seems to not be loading the java script for drag and drop functionality as I don't even see the drop files here dialogue and the script doesn't show in firebug.
I even did a clean install of latetest wp with twentyten theme to eliminate other plugins.
However when I revert back to version wp-filebase 0.2.9.24 the flash uploader works and the drag and drop console appears.
Is there a chance you may have forgotten to implement this feature in version 0.2.9.25.
I am currently seeing if I can reintroduce it by comparing the two versions code. I am not a programmer so chances are slim that I will find the problem but here is hoping.
If you have any advice please feel free to share it :)