Can you post code?
This method seems a bit like smoke and mirrors and there may be a better way (and if there is I hope someone shares :)), but you can try the following:
In this example I use the 'body' as the drop target and use absolute positioning to determine the final resting place of '#foo' once I drop it. To give the illusion that I'm dragging '#foo', I clone it (for the drag), hide it while dragging, and then show it again once it's been dropped.
Hope this has helped!