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Usually, this issue may occur on slower systems, where the Flash application rendering is taxing the processors and the application display is not able to keep up with your mouse movements.
When dragging to a folder, watch the cursor as it moves over the desired drop area. A plain, black cursor will designate that you are within the correct drop area. A black cursor with a red X indicates that you are outside of the drop area.
To resolve this issue, try moving only one object at time, and/or also moving the object slowly once you are over the desired drop location to ensure your mouse position is being properly detected.
To delete images, click the thumbnail(s) of the images you wish to delete in order to select them. Then click the Trash Button to delete them. Do not drag the thumbnail images to the Trash Button.