Dragging and dropping features in the FeatureManager
In Solidworks 99 and prior, while dragging a feature in the FeatureManager to re-order it, you had to make sure that neither the feature you were dragging, nor the feature you were dropping it after, was expanded to show their ingredient sketches, etc. If you forgot to collapse the FeatureManager, the error message "drag and drop failed" appeared.
In SolidWorks 2000, this was corrected. However, users are still sometimes disconcerted by seeing the "do not drop" cursor (the circle with the diagonal slash through it) when trying to reorder a feature after another, if the latter is expanded to show its sketch. Do not lose faith - you can still reorder these features! All you have to do is position the cursor just after the feature icon, but just before its sketch icon. It may seem as though you are trying to drop between the feature and its sketch, but in fact that can't happen. Because the system knows you cannot re-order a sketch that is inside another feature, it treats that area of the FeatureManager as dead space, and that is why you cannot drop anything there. But just nudge your cursor above the expanded sketch, and the reorder will work correctly.