Issues with Dragging Widgets around after applying theme in 1.7

Greetings Elgg Support Team!

I usually always find the exact answer when perusing your site, but this one is boggling me. I set up a fresh install of 1.7, and when using my old themes (1.6.1) everything to my surprise works quite well. However, when I go to set the Default Dashboard / Profile Widgets on the site, the "Dragging and Dropping" Method does not work. If I drag the widget over from the bank to the "Left Widgets," Middle Widgets," or "Right Widgets" they disappear from the list all together. And Even after a save, they all seem to reset back to the bank on the right side of the screen. Truly puzzling to the PHP novice, can anyone help?!

Thanks so much