drop and drag not working

when i drag and drop a file, it never works, an hourglass cursor appears but never does anything. Also, and this is where i am real confused: when i click on file, then local browser, there is no folder displayed to put naything in. Where did i go wrong? Did i forget to do something? Why won't files work when draged and dropped?Where do i get the local browser folder as shown in the tutorial?

Hello ..

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