Hello Dan,
Thank you for contacting Telerik support.
What I can suggest is to use self-reference data binding to display the desired hierarchical data. Please, refer to the attached project.
As to the drag and drop, it is not supported in bound mode, since the data binding scenarios are multiple and each one has some restrictions.
Do not hesitate to contact us if you have other questions.
All the best,
Peter
the Telerik team