IE has a weird behaviour to register some properties in global scope. Elements with an given ID may be accessed simply by using the ID.
So you have a element with the ID "drop_area", it's accessible in IE by using this ID, try:
alert(drop_area.tagName)
..to check it.(should give "DIV")
So what happens: You try to assign something else to this element when using drop_area = $('div#drop_area');
, but this is an invalid operation on an DOMElement.
So use the var-keyword to clarify that you want to create a variable
var drop_area = $('div#drop_area');
or in the case that you have to create a global variable inside a function, assign the variable to the global context:
window['drop_area'] = $('div#drop_area');