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Default Excel not recognizing formula

I am working in Excel and have a formula (simple add two columns and put the
result in a third column) that when I drag it down the column, the formula
put in the new cells changes to the relative row (e.g., C1= A1+B1; C2=
A2+B2...), but the value in the sum column always takes on the value of the
cell from which it was dragged. So, if I have A1 = 1 and B1 = 2; then the
formula in C1 is A1 + B1 and the result is 3. But, when I drag down column
C, no matter what values are in columns A and B, a 3 is always displayed in
column C - even though the formula is propagating correclty (Ax + Bx = Cx).
It seems that some feature has locked out the calculation or something. Can
anyone help fix this? Thanks.
 
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