iPhoto Drag n Drop to Desktop issue

Hi guys, hope you can help me out with this minor issue I've been having. For a long time dragging pictures out of iPhoto to my Desktop has not been an issue at all. Recently for some unknown reason now when I try to drag an image out to the desktop everything lags. Not just a little lag but a lot.

I can drag the image around fine in iPhoto, but the moment I most it out of it's window and hover it over the desktop my mouse it all jerky and I can't drop the image onto the desktop.

I thought it may just be hanging, and I'd just hold it over the desktop for a couple of seconds and it would catch on and work. That's not the case.

FYI, the same thing happens when I try to drag the image to a folder.

Using the latest version of iPhoto and latest version of ML.

Thanks for any assistance.

It would help if you could share anything you've done to try to troubleshoot this problem. Let's start with the most basic: have you done a complete reboot?