Are you using Preview 1 or Preview 2?
The behavior you're experiencing was a temporary design limitation around an earlier implementation of our "Mousetrack" behavior which was implemented in Preview 1. In Preview 2 we updated it and changed the name to "Dragger". If you open a Preview 1 project in Preview 2, you can still be using the old Mousetrack behavior.
Click on your puppet in the Project panel and look at the Behaviors applied in the properties panel? If Mousetrack exists, remove it, and apply "Dragger"
That should fix the issue.
I think DanR meant Preview 3 -- which should be released by this Monday night, if all goes well. Doing an AE update after then will also update Ch. If you still have the problem after that, please post more details here.
My mistake, I thought Preview 2 had the updated Mousetrack behavior.
Preview 3 is now publically available. Please give it a try and offer your feedback!