When I made the game on my computer it worked fine. I tried uploading it to my page and nothing was movable. So it doesn't work on the web and in full screen mode but it works just fine if you have it on your computer and in the regular size window. Does any one have any ideas.
http://scratch.mit.edu/projects/scubaman/748315
Offline
The reason why it works in offline non-full screen mode is because that is called edit mode.
In edit mode you can grab sprites and move them around.
If you want to do this in online and full screen mode you simply click the padlock so that it opens.
The padlock is located here:

Offline