Use Finder Windows as Application Launcher

An underused feature of Mac OS X is the ability to use any Finder window as an application launcher. Simply drag any application into the Finder windows titlebar and the apps icon will stick to it, allowing you to launch the app directly from anywhere within the Finder. You can also drag and drop files into the app icons, making this feature even more useful.
To remove launchable apps from the Finder windows just right-click on them and select “Remove Item” to clear the space.

Very Handy, had no idea this was available, Thanks!!
This was available from 10.4, lol
For more then anything else, this is the place to put an application like http://homepage.mac.com/thomasw/OpenTerminal/
that opens a terminal at your current directory.
Available from 10.4?
It does not work on my 10.5.8. Is there an extension required for this to work?
Ooops! I was trying to drop the icon at the very top of the finder window instead of the row where other icons are located. Live and learn.