Thanks for the suggestions Lane, I am currently moving the paddle with the arrow keys but want to move it using the mouse.
I tried your suggestion and it move the paddle but only a very short distance. During the slight move, the paddle keeps flashing (stuttering) back to its original position. Once the mouse moves past the original paddles position, the paddle snaps back to its original position.
I used the Mouse Pick action and stored the position in a V3 variable called mousePos and checked every frame. Under the mouse pick action, I placed the Set Position action and chose the mousePos variable as the vector and then selected the X axis. After my mouse hovers over the paddle, it grabs it but only moves it a short distance before snapping back to its original position.
I also checked the Late update but that didn't change anything, any other ideas?