I did some more googling and came across this post:
http://www.tasharen.com/forum/index.php?topic=62.0ArenMook suggests what i currently do, although instead of instantiating a copy i create a whole new gameobject set up the way i want for what ever purpose. But it's not receiving an mouse events it seems.
[Edit]
Seems the collider was being set to 1,1,1 in size : /
However the following issue is left. If i try to drag the scroll view, the button I drag on makes a copy as i use OnDrag in the button to create a copy for dragging.
Requirements:
Drag a copy of an item off of the list without the scrollview following mouse movement
Still be able to scroll the view since it use OnPress to init dragging