The drag and drop should have worked....
You may need to experiment as to what will work based on your version of Exel and FM. That may be the reason.
Jim is also on the right track with saving the xls file as tab-delimited text and then importing into a FM database. You may need to create a temporary database file if the drag&drop doesn't work, then clean up the data (no import is perfect) and finaly import into the templates.