Don't drag the text to the bottom where it says "Drag Text Here". Instead, select the text scraps button on the toolbox .. and then drag the text into the open space that appears after the button.
The box at the bottom is just a place for the description of the selected button to appear. I know .. this is misleading!!
>How do you add a text scrap to the toolbox?
>
>There is a section at the bottom of the toolbox that says 'Drag text scraps here'
>
>When I do, nothing happens.