drag drop enabled edit box

Hi,
I am trying to get an edit box to accept dropped files. It works fine if I include an edit box in my dialog box template and check the box "accept files" in the properties dialog box extended styles tab.

I am also trying to embed a dialog containing a similar edit box inside another dialog.

The drag-drop for the edit box fails in this situation. I cant figure out what I am doing wrong. Please help..!!!

BOOL CNewDialog::OnInitDialog()
{
CDialog::OnInitDialog();

// TODO: Add extra initialization here
CRect rc;
m_Frame.GetWindowRect(rc);
ScreenToClient(rc);
if (m_pDlg)
{
m_pDlg->Create(m_ID, this);
m_pDlg->SetWindowPos(0,rc.left, rc.top, rc.Width(), rc.Height(), SWP_NOZORDER);
}
m_pDlg->ShowWindow(SW_SHOW);
return TRUE; // return TRUE unless you set the focus to a control
// EXCEPTION: OCX Property Pages should return FALSE
}