A quick and simple example of how to do drag+drop in Titanium

app.js

Ti.include("TiDrop.js");

var tabGroup = Ti.UI.createTabGroup();

var window = Ti.UI.createWindow({  
    title: "Drag + Drop",
    backgroundColor: "#FFF"
});

var tab = Ti.UI.createTab({  
    title: "Drag + Drop",
    window: window
});

var box1 = Ti.UI.createView({
	width: 100,
	height: 100,
	top: 10,
	left: 10,
	backgroundColor: "#7A0000"
});

var box2 = Ti.UI.createView({
	width: 100,
	height: 100,
	top: 10,
	left: 120,
	backgroundColor: "#007A00"
});

var container1 = Ti.UI.createView({
	width: 300,
	height: 120,
	top: 237,
	left: 10,
	backgroundColor: "#CCC",
	items: 0
});

function yay(e) {
	if(e.contained) {
		e.source.top = 247;
		e.source.left = 20;
	}
}

TiDrop.init(box1, container1, yay);
TiDrop.init(box2, container1, yay);

window.add(container1);
window.add(box1);
window.add(box2);

tabGroup.addTab(tab);  
tabGroup.open();

TiDrop.js

var TiDrop = {
	touching: false,
	position: {
		elementYStart: 0,
		elementXStart: 0,
		yStart: 0,
		xStart: 0,
		yCurrent: 0,
		xCurrent: 0
	},
	init: function(_element, _container, _callback) {
		_element.addEventListener("touchstart", function(e) { TiDrop.touchHandler(e); }, false );
		_element.addEventListener("touchmove", function(e) { TiDrop.touchHandler(e); }, false );
		_element.addEventListener("touchend", function(e) { TiDrop.touchHandler(e); }, false );
		_element.addEventListener("touchcancel", function(e) { TiDrop.touchHandler(e); }, false );
		
		if(_container) {
			this.container = _container;
		}
		
		if(_callback && typeof _callback == "function") {
			this.callback = _callback;
		} else {
			this.callback = false;
		}
	},
	touchHandler: function(_event) {
		if(_event.type == "touchstart") {
			this.touching = true;
			this.element = _event.source;
			this.position.elementYStart = this.element.top;
			this.position.elementXStart = this.element.left;
			
			this.position.yStart = parseInt(_event.globalPoint.y, 10);
			this.position.xStart = parseInt(_event.globalPoint.x, 10);
		} else if(_event.type == "touchmove") {
			this.position.yCurrent = parseInt(_event.globalPoint.y, 10);
			this.position.xCurrent = parseInt(_event.globalPoint.x, 10);
			
			var yDistance = this.position.yCurrent - this.position.yStart;
			var xDistance = this.position.xCurrent - this.position.xStart;
			
			_event.source.top = this.position.elementYStart + yDistance;
			_event.source.left = this.position.elementXStart + xDistance;
		} else if(_event.type == "touchend" || _event.type == "touchcancel") {
			if(this.callback) {
				var _data = {
					source: this.element,
					position: {
						y: this.position.yCurrent,
						x: this.position.xCurrent
					},
					contained: this.withinContainer()
				};
				
				this.callback(_data);
			}
			
			this.element = null;
			this.touching = false;
			this.position = {
				elementYStart: 0,
				elementXStart: 0,
				yStart: 0,
				xStart: 0,
				yCurrent: 0,
				xCurrent: 0
			};
		} else {
			Ti.API.info("TiDrop: Not a valid touch event");
		}
	},
	withinContainer: function() {
		var contained = true;
		
		if(this.container) {
			if(this.element.left < this.container.left) { contained = false; }
			if(this.element.left > this.container.left + this.container.width) { contained = false; }
			if(this.element.left + this.element.width > this.container.left + this.container.width) { contained = false; }
			if(this.element.top < this.container.top) { contained = false; }
			if(this.element.top > this.container.top + this.container.height) { contained = false; }
			if(this.element.top + this.element.height > this.container.top + this.container.height) { contained = false; }
		} else {
			contained = false;
		}
		
		return contained;
	}
};