Please suggest a HTML Editor that had a drag and drop functionality and that is free. I have been trying a few editors that are free but they seem to have very restricted capabilities. Something like Microsoft frontpage would be good.
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Do you need "Open Source" or do you need "Free"?
If you just need "something like Frontpage that's free", you can download the actual replacement program for Frontpage, Microsoft SharePoint Designer 2010. Although it's not OSS.
If you really need "Open Source WYSIWYG", you won't get a good quality editor that's not just an HTML markup editor with code-completion. Extending an IDE to support HTML is just too easy, and you can get perfectly serviceable "preview" by launching your local HTML file in an actual web browser.
It's just not a problem-set that's not all that exciting to solve. Making a good WYSIWYG/WYSIWYM HTML editor has too small a potential audience and too large a pool of potential problems for a good solution to emerge. (And throwing one together with something like CKEditor is easy enough to solve if you really need to let non-technical people edit web pages and can't use a good Content Management System.)