Pcmanfm supports drag and drop:

http://pcmanfm.sourceforge.net/

Features:

    * Extremly fast and lightweight

    * Can be started in one second on normal machine

    * Tabbed browsing (Similiar to Firefox)

    * Built-in volume management (mount/umount/eject through HAL)

    * Built-in file searching utility (GUI frontend for the UNIX find + grep command)

    * Drag & Drop support

    * Files can be dragged among tabs

    * Load large directories in reasonable time

    * File association support (Default application)

    * Thumbnail for image files

    * Bookmarks support

    * Handles non-UTF-8 encoded filenames correctly

    * Provides icon view, compact view, and detailed list view

    * Standard compliant (Follows FreeDesktop.org)

    * Clean and user-friendly interface (GTK+ 2)

Just tried this on my 8.10.2 Lite:

Select a file (and "hold" the selection) to "pick up" the file and move the cursor over a directory until the cursor shows a little arrow.

If you open a second tab (crtl+t) in pcmanfm you can select file in the first tab, drag it to the second tab after which pcmanfm changes to show the contents of the second tab where you can release the file.

If you open two instances of pcmanfm you can drag and drop a file from one instance to the other using the same technique.

I did not need to change any settings in pcmanfm.

Hope this helps.