I have been doing this all day, maybe I figured it out. The mousewheel event is dispatched only with focus control. The panel cannot have focus. Since the panel closes the usercontrol, it also cannot get focus. (unless it's the only control on the form) If I call me.focus on the mouseenter event panel, it sets focus to usercontrol, allowing it to accept the mouse event. The event is triggered in form and in control. I am still open to suggestions if there is a better way, although this seems a bit hacky.
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