page thumbnails won

A page layout document, where each thumbnail is an individual page and a section allows you to move one or more thumbnails in different order without placement or rearrangement restrictions.

What you are describing does not sound like a page layout format document. Have you opened the Document panel and determined that Document Body is not selected?

BridgetHT wrote:

Thanks for your response. Yes, I have, and it is not checked. Also, under Edit, it says "Convert to word processing document", which tells me I am still in Page Layout mode. So I am stumped. It is a 28 page document set up as a booklet. (it's a newsletter) Could that be the problem?

Maybe. I don't work with newsletters so there may be something inherent with the newsletter template in use that interferes with normal thumbnail rearrangement.