Unable to drag and drop form into folder

I need to move a form into a folder but when I try to drag and drop the form it doesn't seem to work and it just highlights the page.

I was not able to reproduce mentioned problem. I was able to drag and drop my forms to folder.

Maybe it was temporarily problem. I would suggest you to clear your form cache and your browser cache. You can also try to use different browser.  

Also in this article you find another way to add your forms into folders:

http://www.jotform.com/help/204-How-to-Add-or-Group-your-Forms-into-Folders 

Hope this will help. Let us know if you need further assistance.