"Show windows contents while dragging" option is disabled after a restart
If you have a Dell PC, then the problem is most likely due to "Dell User Experience" utility. Check with Dell Technical Support to sort out this problem.
Dell Community forum - Software - Windows XP - Show window contents while dragging:
http://forums.us.dell.com/supportforums/board/message?board.id=sw_winxp&message.id=104214
