You could take a look here:
http://support.microsoft.com/?kbid=320081

Another thing what came to my mind is that the file you try to cut is still used by LW. Did you try to cut and paste after LW was shut down completely??

Also, your explanations in regard to "from folder to folder" is not very precise. Where is/was the original folder located? Where was/is the folder you paste it in? Where was/is the folder you tried to cut and paste it to?

As to the file itself, did you check on the sharing option via right-click>Properties>Sharing??

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"Never Argue With An Idiot. They Will Drag You Down To Their Level, Then Beat You With Experience"