I am trying to make a drag and drop application which will allow be to drag and drop shapes onto a main pannel, I then need to allow the user to be able to ammend the size on the main panel something so the user can strech or make the shape smaller

All you have to do is change the .width and .height properties of your shapes. The most natural interface would be to have the mouse drag to the shape to any position. Then use some combination of right mouse button drag, shortcut keys, and or interface buttons to control the height/width properties of the shapes. Whenever a shape is selected, you'll have to pass it into a variable, and then control the variable's properties so that whatever shape the user clicks on in the main panel will be resized.

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