Create Folders in Windows by Dragging and Dropping - Easy Method

Streamlining File Organization with Smart Folders
Users of iOS and Android platforms are often accustomed to the convenience of drag-and-drop functionality when creating folders. If this method of file grouping appeals to you, similar capabilities can be implemented on a Windows PC through a complimentary utility known as Smart Folders.
Smart Folders facilitates rapid file organization, encompassing items like images, documents, and audio files, without the prerequisite of creating folders beforehand. A new folder is generated simply by dragging one file onto another.
Installation Process
To begin utilizing Smart Folders for simplified folder creation, locate and double-click the .exe file that was downloaded (a link is provided at the article's conclusion).

Should the User Account Control dialog box appear, select 'Yes' to proceed with the installation.
Note: The appearance of this dialog box is contingent upon your current User Account Control settings and may not always be displayed.

The Smart Folders window will then be displayed. To enable folder creation via drag-and-drop, click the 'Install' button.

A confirmation dialog will indicate successful installation. Click 'OK' to close this dialog.
Note: Installation of Smart Folders triggers a restart of Windows Explorer, resulting in the automatic closure of any open Explorer windows.

Registering File Extensions
By default, Smart Folders is automatically registered for all file extensions. However, due to registration by Windows and other applications for their specific file types, manual registration of certain extensions may be necessary.
To register an extension manually, input the extension (excluding the period) and click 'Register'.

The extension will be added to the 'Registered File Extensions' list. To remove an extension, select it from the list and click 'Unregister'.

Using Drag-and-Drop Functionality
With the setup complete, you can now leverage the drag-and-drop feature to create new folders. Simply select a file and drag it over another file within Explorer or on the Desktop.

The 'Name Folder' dialog box will appear. Enter a desired name for the new folder in the provided field and click 'OK'.

The folder will be created as a subfolder within the original file's location, and both files will be moved into the newly created folder. Additional files can then be dragged into this folder as needed.

Uninstalling Smart Folders
Upon completion of folder creation, Smart Folders can be uninstalled. Click 'Uninstall'. A confirmation dialog will appear, indicating successful uninstallation.
Note: Uninstalling the program will unregister all extensions, including those registered manually. Re-installation will require manual re-registration of desired extensions.

To exit Smart Folders, click the 'X' button located in the upper-right corner of the dialog box.

Smart Folders is compatible with both 32-bit and 64-bit versions of Windows 7, Vista, and XP.
You can download Smart Folders from http://www.addictivetips.com/?p=90886.
Alternatively, Files 2 Folder offers a similar functionality, allowing you to select files and then right-click to create a new folder.