Please try Folder Options X :
http://free-sk.t-com.hr/T800soft/software/FolderOptionsX.html
https://github.com/T800G/FolderOptionsX
It was suggested to me by a fellow MSFN member here but, sadly, I can't recollect his username, nor is it possible to retrieve his post: it was lost due to the forum's database corruption in early June of this year...
Like WinXP, Windows Vista retains free sorting of folders+files, a feature that was removed by M$ in Win7+'s Explorer ; my preferred folder view in Explorer is Tiles, and the inability to freely re-arrange files/folders inside a directory drived me crazy on my sister's Win7 64bit laptop; but, thankfully, Folder Options X came to the rescue !!!
Unzip and run the installer (if you want to be extra cautious, you can create a system restore point prior to the installation, I did not have to, everything went along fine...); be sure to check "Enable icon reordering" in the app's settings:
what is unfortunate is that the app was released 4 Feb 2017, too long after Win7's own release...
Very late reply, but wanted to say many thanks for recommending FolderOptionsX.
Installed it an it works a treat.
I had tried the 'Disable Auto Arrange' patch (.bat file) available from another forum but that one doesn't have as many options available and was a bugger to remove (had to reimage the drive), whereas FolderOptionsX can be easily disabled from the GUI with no issues.
The only drawback (which also exits on the .bat patch) is that the folders, etc blow up when they are dragged.
Cheers