Interestingly, because of the security setup in Ubuntu, drag and drop file management (ability to drag files from one folder to another) doesn't work without a little tweaking. I'm still learning the ins and outs of how Ubuntu is put together and how the all powerful "root" user corresponds to some commands or programs we want to run in Ubuntu.
Opening programs as the "root" user has the potential of creating some security or stability issues, but this small tweak seems to be universally accepted. To read more about drag and drop, the hack and how they relate to the Linux root user, read this forum thread on the Ubuntu Forum site [1].
What I demonstate in the video below is how to create a launcher item (shortcut) on your Ubuntu panel to open the file manager (Nautilus) in a mode that allows you to drag and drop files from folder to folder.
Now your accessing your file manager (Nautilus) from this panel button allows you to drag and drop!
Links:
[1] http://ubuntuforums.org/showthread.php?t=24008
[2] https://www.paypal.com/cgi-bin/webscr?cmd=_xclick&business=rick@yourpcpartner.com&item_name=Buy
[3] http://www.helpmerick.com/rick_castellini_adam_cochran_weekly_computer_help_show_09.htm
[4] http://www.helpmerick.com/reconsidering_extended_warranties.htm