I'm trying to use the treeview to display a file structure with direcotries and subdirectories, also i want to allow the user to edit the structure. I need to prevent the documents to become folders which is why I call "setStatusClass('k-denied') on the drag event when the user tries to drop a file "inside" another file. It works, doesn't allow the user to drop a file into another but i notice that the file is not "marked" anymore, it has the class ".k-state-hover" but it seems like isn't working. On the other hand when the kendo framework does the same, for example when you try to drop a node inside one of its child nodes, it works perfectly.
Here is an example, when you drag "Kendo UI Project" into "Word.docx", "Word.docx" is highlighted but when yo drag "Word.doc" into "Word.docx", "Word.docx" is not highlighted.