Cut/paste folder problem : Item Not Found

I see you apparently found a solution. The thread title suggest an interesting problem. What solution did you find? It might help others in the future.
 

My Computer

Computer type
Laptop
Computer Manufacturer/Model Number
Toshiba P775-S7100
OS
Windows 7 Professional SP1 64-bit
CPU
Intel Core i5-2450M @2.5 GHz
Memory
6 GB DDR3 1333MHz
Graphics Card(s)
Intel HD 3000
Monitor(s) Displays
Built-in 17.3" LED; 22" Insignia NS-L22Q-10A
Screen Resolution
1600x900; 1360x768
Hard Drives
750 GB Hitachi
1TB Seagate FreeAgent External
Internet Speed
Verizon DSL Speed(Down/Up): 3360 Kbps / 800 Kbps
Antivirus
MSE and MBAM Pro
Browser
IE10
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