Call this.Invalidate()
to get the Form/Control to redraw itself. If you know the specific region, then call one of the overloaded methods to specify what to invalidate. For example:
Rectangle toInvalidate = new Rectangle(drgargs.X - 50, drgargs.Y - 50, 50, 50);
this.Invalidate(toInvalidate);
That would invalidate an area 50 pixels around the area the drag target is.