What browser are you using? I don't think IE 9 supports this feature and therefore the drop area will not be present but otherwise from this there is no configuration needed to enable this.
It doesn't work in ANY browsers.
@Linus, thanks for your response. It has helped us decipher some things. I have now been able to drag and drop files - a confounding factor is that this doesn't work when viewing under localhost under Casini through a VS build. Once deployed the drag and drop is available when served through IIS.
So, a problem we are experiencing appears to be that our editors have wanted to keep to the legacy edit mode (the /manage/cms/edit path). Drag and drop does not work with THAT view. Does this make sense?
Can you confirm that using the CMS6 /manage... path is not supportive of drag and drop. This will both allow us to resolve this question, and convince our editors that it is time to move forward :-)
We have moved two sites from CMS6 to CMS7. One frustration is that we have not managed to get configuration correct for allowing drag and drop (in ANY browsers).
See screen shot of edit mode files window: http://waikatoregion.govt.nz/epiCMS7WhereIsDragAndDrop.png
Compared with other documented presentations: http://world.episerver.com/Globals/xmlrpc/41008/2012/08/31/image_thumb_4.png
We are unable to find the error of our ways. Please can anyone point us to reference of how to get this set up.