That's a very gracious offer. I should re-iterate, though, that I can't replicate it myself on another machine. Banjaxed! What I have is:
Dell Desktop: Windows 7 Home Premium 64-bit OS, WAMP installation (Apache 2.2.17, PHP 5.3.4, MySQL 5.1.53). Three WP implementations: localhost is WP 3.4.2 and works perfectly; localhost/odonata is 3.4.1 and works; localhost/bnhs was vanilla WP 3.3 which allowed drag and drop menu definition, auto-upgrade to 3.4.2 broke it (now dragging just highlights text). I've trashed localhost/bnhs a couple of times and started from scratch - same deal, broken drag and drop.
Dell Laptop - same setup: Windows 7 Home Premium 64-bit OS, WAMP installation (Apache 2.2.17, PHP 5.3.4, MySQL 5.1.53). localhost is WP 3.3.1. localhost/wordpress33 started with vanilla WP 3.3, auto-upgrade to 3.4.2 and it does what it says on the tin - all works as expected. I've installed a couple of plugins (Contact Form 7, Fast Secure Contact Forms, Contact Form to Database extension) which is where I came in and that doesn't break it. (I left these out of the re-installations on the desktop.)
The desktop installation is my development machine for a couple of sites I look after using WP, including my own. The laptop is a shadow for me to carry and reference when travelling.
This is so weird.