Not sure which demo movie you are referring to to be honest.
But the methods I have used to drag a photo to a shape (and have that photo become the shapes' 'fill') are many, but I think the easiest is to drag and drop a photo into Xtreme then delete it. Create your vector shape, open the bitmap gallery, select the shape and whilst holding SHIFT, drag the photo from the bitmap gallery and drop it onto the shape.

You can then use the fill adjustment handles to edit the fill further