Tag Folders can be used as Smart Folders. They are easy to use with drag-and drop. Smart Folders can locate files anywhere on your computer. Regular folders allow you to organize your files easily. Tag Folders do both.
Drop any file into a Tag Folder and it will be immediately tagged to match the Tag Folder search criteria. You can open the Tag Folder to see all files with that tag in a Finder window.
Version 2.6: