I really don't understand the question. Proper and precise terminology can be a big help.
For staters, it's called a timeline. Or a sequence. Either will do.
Now by dragging, do you mean dragging from the bin or the source monitor to the timeline, moving a clip within the timeline, or extending the ends of a clip in the timeline?
I believe you are referring to version 7 of Premiere Elements. This is the forum for Premiere Pro. There is a separate forum for Elements.
Welcome to the PrPro forum. I believe that you want the PrElements forum.
Now, when Scenline View Mode acts up, it is usualy a problem with the Project setting and source footage with DD 5.1 SS Audio. Choose a Project with DD 5.1 SS Audio. I also strongly recommend using the Timeline View Mode, especially with DD 5.1 SS. It might look a bit weird, when you first go to it, but that is by far the better way to edit. Use it, and you will love it.
Also, be prepared for the DD 5.1 SS Audio to drop to a lower Audio Track. You may have to scroll to see it.