So what it sounds like you are really wanting is this
http://v3.planningwiz.com/ but not in flash. (by the way, click on the left examples of plans to see it in action)
>I want to develop an application in which image objects are dragged and placed into
another region or near other fixed objects.
This will be done via the jquery draggle function
>Now I want to drag a chair which is also an image with transparency such as PNG image. Depending where I drag the chair near table, certain portions of chair are automatically hidden by the table just like in a real word it would.
This will be done by changing the zindex of your image with on on click so once you click in image, it will be on top of all other images.
http://stackoverflow.com/questions/890191/can-you-change-z-index-with-js-in-ie8You can also assign zindex values in your code so that a chair for instance will always be under a table. There is a great easy jquery plugin for this
http://plugins.jquery.com/project/drag The examples are
http://threedubmedia.com/code/event/drag/demo/ and if you find the one for zindex that will help give you a hint of what to do.
The key will be assigning the zindex values to each draggle item to determine what goes on top, middle or bottom. You can choose to bring it on top with zindex when clicked but go back to its default state after it is released such as the case with a table and chair where the chair should be under the table.
I believe this meets your needs based on what you have provided so far. I think from here is to start building your page and if you require code examples of where you are stuck, post your code so we can see what you working with along with some sample images.
It sounds like this will be a nice project to complete.
