I do think that regardless whether you modded Disk Utility to show the hidden volume, you should be able to, as you say, drag to expand Hard Disk up to Recovery HD. When you do this, check that the size of the new partition numerically changes. You can try adding 100GB at a time, and see how it behaves. It could be you just have a slight error in the number (size) so that it conflicts with where Recovery HD should [be hidden].
Really, there isn't a good reason to make the Recovery HD visible. It will automatically be created just following a 10.7 or newer partition; conversely, if that partition were to no longer be used for OS X, the Recovery HD partition should be removed automatically. If you need to restart to a Recovery HD, use the CMD-R option on startup; "opt" on startup to select any valid volume for startup.