looking to drag a combination of a photo and live text together. its surprisingly hard.

I am pretty sure they coded it themself, but I was pretty impressed with the drag'n'drop magic within the Panic site/store, when I first saw/noticed it.

oh, I guess I just mean click & drag.

I haven't had a need to do it on any of my own sites, but jQuery UI would be the place that I would start looking first.