Android : Unable to drag and position UI elements in Eclipse ADT

In the graphical layout editor I am unable to position the UI elements. Whatever I do, they are always placed in the top left corner of the screen. Examples:

In the floating box you can see I'm trying to bring it down to the bottom but its ultimately placed where the dotted lines indicate.

Here I added a listview layout and I'm trying to add the textfield at the bottom,

Here is the result