Is it possible to Alpha Blend or implement a similar effect for a VCL control on a TForm?
For example, consider the following screenshot where two TPanels are place
To implement a drag operation displaying the image of the control, you must create a TDragControlObject descendent and implement the GetDragImages method, from here you must ensure to add the csDisplayDragImage value to the ControlStyle property of the controls to drag.
You can find a very good article about this topic here Implementing Professional Drag & Drop In VCL/CLX Applications