Hi,
Thank you for contacting Microsoft Community and we are glad to assist you with your concern related to Excel.
Dragging and dropping the pictures/images into Excel is not a feature of Excel 2007 or Excel 2010.
The images has to be inserted or embedded into the file to view them in Excel.
As a work around you may try the following:
Insert or copy/past the images into a Word document and then open a Excel window (ensure the Word and the Excel window is placed side by side) and then try to drag and drop the images into Excel file from Word.
I hope the above information helps. If you need further assistance on this particular issue or any other Office related issues let us know and we will be glad to assist you.
Thank you.