Design view in Visual Studio 2010 Academic

Hello,

I am having some weird issues with my VS 2010 Academic.
I have been using VS 2003 so far, had needs for VS 2010 until now.

I am having a stupid issue.

I setup a new Web Application and wanted to create my first web page in it.

I drag a textbox or a button from Toolbox on the new page, in Design view.

Then for some reason I can not freely drag textbox to any location on that blank webpage. (I left click on the textbox or button, hold and attempt to move it around  on the page)

I can only move that textbox or button up and down, can't moe it horizontally or in any other chosen direction.

What am I doing wrong? Is there a certain setup in VS 2010 that I need to set ?

Attached is screenshot of my simple VS 2010 Design page. You will see the button on it, and Design view looks like some old HTML editor ?

This VS 2010 is installed on 2 servers with different OS (Windows Server 2008 R2 and Windows Server 2003), as I wanted to make sure the issue is not due to OS.

Thank you for your help in advance.
WebPage.jpg