So either I've found a bug or I'm doing something wrong. I hit the resources button and walk around until I find one that has "Scrap Cloth" in it. Pick up a few scrap cloth and click my tailoring window. The very first item on the list, Cloth Scraps, requires a tool and some "Fabric". I try and drop the "Scrap Cloth" I picked up off the ground into the "Fabric" on the crafting window and it won't accept it. How exactly am I supposed to do it? Or is this a bug?
Also, how are new recipes and stuff found?