Similar to the favorites menu in IE, you can right click on the favorites menu and select from the context menu to carry a shell operation on the corresponding favorites item or folder. The available operations will be listed on the context menu. Usually they will include operations like "Copy", "Cut", "Delete", "Open", etc. Currently you can't drag & drop the favorites item from the menu. However, you can re-arrange them by drag & drop the favorites bar.

Similar to the links bar in IE, You can right click on the links items on the links bar and perform operations on the selected item from the context menu. You can re-arrange them by drag & drop.

Select "View->Explorer Bar->Favorites" to show the favorites bar/pane at the left side of the site window. You can re-arrange the order of the favorites item in the favorites pane. You can also drag & drop them between different folders.

You can drag & drop URL shortcuts between the favorites bar, links bar, address bar, the homepage toolbar button and the favorites toolbar button.