Drag & drop is not reliable creating new folders is hard to find can't upload directly to a folder I just created; why extra steps? can't multiple select (shift-select) to move files to a folder
Once files are dragged to the Upload to Library overlay, you should be able to click on the images to select them and then on the left side of the overlay, you can choose a folder that they will be added to.
If these steps do not help you, please contact support so we can further help you with this problem. http://www.constantcontact.com/support/index.jsp
Tier 2 Support
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