So the topic title is pretty self-explanatory what I want to do is drag a folder to the side of the screen and make a folder out of it. This was possible in XP and in Vista I think but I can't do it in 7. Any way to do it,native or via program ?
Should be pretty straight forward and very similar to the way you've done it before.
Create the folder on you desktop, then right click on an empty spot on the taskbar, choose toolbars, then new tool bar, then browse to the folder on your desktop.