I have a working example of a designer host from available working examples

http://www.divil.co.uk/net/articles/designers/hosting.asp

and

http://msdn.microsoft.com/msdnmag/issues/04/12/CustomFormsDesigner/default.aspx

I'd recommend the first link, as it's there appear to be more issues with
the MSDN article example code in v2.0.  The problem is in Beta 2 when
dropping container controls on the designer surface, like a GroupBox or
Panel, these control cannot be moved, as the adornment (the new feature of
Whidbey) is not responding.  A Button or Label can be moved just fine.

I even added the following lines

0001: BehaviorService test =
serviceContainer.GetService(typeof(BehaviorService)) as BehaviorService;
0002: test.BeginDrag += new BehaviorDragDropEventHandler(test_BeginDrag);

after

0001: rootDesigner = (IRootDesigner)host.GetDesigner(form);
0002: view = (Control)rootDesigner.GetView(ViewTechnology.Default);
0003: view.Dock = DockStyle.Fill;
0004: splitContainer1.Panel1.Controls.Add(view);

and receive the Begin Drag events for non-container controls such as Button
and Label, however nothing for the GroupBox or Panel controls.

Any assistance would be appreciated.

Cheers,

Stuart