You are trying to get a file as a string, so I imagine it's your e.Data.GetData(DataFormats.StringFormat)
line that is throwing. If you're dropping a bitmap onto your control then you can treat it as such. Try this.
private void Image_Drop(object sender, DragEventArgs e)
{
BitmapImage tmpImage = e.Data.GetData(DataFormats.Bitmap);
testImg.Source = tmpImage;
}
Although I recommend you put in code to ensure you are checking the type of what has been dragged onto your control before assuming it is a bitmap.