How to enable interactive resizing of windows?

http://i49.tinypic.com/i1e1j5.png

I have no idea what caused this change, but in the past when I resize or move a window it would follow the cursor I'm dragging, but it doesn't anymore. Now an outlined frame follows my cursor and the window doesn't move until I release the mouse button.

Weird, unwanted changes like this all of a sudden keep happening to this partition I just got back after 4 years.

On 12 Aug 2012, Industrial One wrote in
microsoft.public.windowsxp.general:

http://i49.tinypic.com/i1e1j5.png

I have no idea what caused this change, but in the past when I
resize or move a window it would follow the cursor I'm dragging,
but it doesn't anymore. Now an outlined frame follows my cursor
and the window doesn't move until I release the mouse button.

Weird, unwanted changes like this all of a sudden keep happening
to this partition I just got back after 4 years.

http://www.xp-tips.com/customize-visual-effects.html

"Show window contents while dragging"

Thanks! Weirdly, this was already checked when I opened performance tab, but I turned it off then back on and its now fine.