OK for this part of the lesson it's asking me to drag and drop the pic's given to you. No idea why its not working.

When I did this it was a little confusing as well. The 'grey area' Nick speaks of is at the bottom of the window. When you're dragging something into the window there will be a small square that says something like, "Drag files here."

You literally click and drag the pictures from the folder based on your actual drive and drop them into the grey sidebar on the left of Workspaces. If it doesn't work, make sure you don't have anything blocking scripts. You actually can completely skip dragging them there and just take a second to think about the path needed to properly use the pictures. When I did the starter course last night, I actually used Sublime Text 3. My index.html, about.html, contact.html were in a folder called "Portfolio". Inside the "Portfolio" folder was a subfolder named "images" and "css".

Here is an example of my list.

<li> <a href="img/numbers-01.jpg"> <img src="img/numbers-01.jpg" alt=""> <p>Experimentation with color and texture.</p> </a> </li>

Perhaps you could try an external editor for a bit?