When I drop an image on a canvas in AIR the image "jumps" a few pixels to several from the current mouse location.
So if the mouse is at location (12, 12) and I drop the image it may appear at (10, 14), or (15, 20), or whatever. It doesn't appear to be a consistent offset like I would expect if this were caused by using global to local mouse position thing (but I'm not ruling that out anyway).
Secondly, when I then drag to move the image on the canvas the drag proxy will again jump many pixels from the mouse cursor.
Here is my mouse down handler:
private function dragBegin(event:MouseEvent):void
var dragInitiator:Image = Image(event.currentTarget);
var ds:DragSource = new DragSource();
var dragProxy:Image = new Image();
dragProxy.source = event.currentTarget.source;
DragManager.doDrag(dragInitiator, ds, event, dragProxy);