"So when I'm working with folders in libraries, it is impossible to paste a file into any folder that resides hierarchically under a library folder by right clicking on the folder. You can only choose cut or copy. In order to paste a file into a folder to which you have navigated by going the library route, you have to actually open the folder and right click somewhere in the white space of the open folder."
Yes, I also paste to them all the time as well. But as I stated in my original post, I cannot right click on the folder and choose paste as it is unavailable. I have to click the folder itself causing it to open, and then I have to right click somewhere in the white space of the open folder and choose paste.
So the question still remains outstanding and unanswered: Why can I not right click on a folder within a library and choose paste? If I can paste to it by opening the folder and right clicking somewhere in the white space of the folder and choosing paste, then I should be able to right click on the folder without opening it and choose paste