This is using a Windows 7 PC. I see the files in iTunes, try to drag them to my desktop and nothing happens. I get the little "+" symbol as if everything is going to be ok, but no dice. I can still drag from other apps without a problem.

EDIT: I'm trying to drag folders/projects. A Mixdown transfers out as it should, but I can't actually get the project off of my phone to my desktop. In the end, I'm trying to transfer a multitrack project from my iphone to my ipad.

Welcome Sabicas. Yeah, dragging folders out of iTunes File Sharing never worked on PC, but you should be able to click the button 'Save to...' along the bottom while highlighting the folder.

To get multitrack projects to another device, a more direct way is to use AirDrop. To do this:
Long-Touch the song icon in multitrack (until they start shaking) then tap the Zip subicon. A zipped song project will be made.

Then Long-Touch this new zipped song icon and tap the Share subicon. An 'Open in' menu will be displayed.
If you have your devices set up for AirDrop, they should appear in the upper portion. You should be able to share the zip directly to the other device. The other device will ask what you want to do with the zip file, tap 'Open in' to MultiTrack.