I have been working with Raphael to create drag and drop shapes on a canvas. I do this using the .drag() function (supplied in the Raphael framework) along with my
//Create paper element from canvas DIV
var canvas = $("#Canvas");
paper = Raphael("Canvas", canvas.width(), canvas.height());
$("#canvas").click(canvasClick);
canvasClick: function(e) {
if (e.target.nodeName == "svg" || e.target.nodeName == "DIV" )
},