Check the folder permissions of the folders you are having problems with.

Also check for viruses,etc. it sounds like your folder is locked or semi locked. ___ (a) Incomplete Download File won't delete at all (click on link). This link has many suggested utilities to use.
Getting access to locked files or folders: (b) How to take ownership of a file or folder in Windows XP (click link)

Make sure LW is closed when you try to move files.

This could possibly be some kind of bug in the new versions, though this is the first I've heard of this problem, could possibly report it here LimeWire Beta Forums

Hi, Juan and LotR...

I seem to recall there having been some other posts alluding to this same problem post-update. I cannot remember any details right now but I'll have a search.
Thing is that I am sure I have seen this subject raised but not in such a cogent manner.
I mean, I have the impression that Juan is about 18.736 years past 'newbie status" (Min).
All the steps and reports he has made indicate to me another bug in LW.
Problems started only after the gobsh¡te update more or less 'forced' on users... Some really bad 'threatening nature' popups.

And,
It ain't Winamp !

It was the Ownership issue that was blocking the access. Once I turned off the default MS "Simple File Sharing" and followed the steps to "Take Ownership", although I was already logged on as Administrator, apparently this function became an issue with the newest version of LW. As a user of LW Pro, I was able to send LW Tech support the question, too, after exploring the forums. I haven't gotten an answer back from them, yet, but I will tell them you deserve kudos for unravelling the mystery.

I will have to do some further research to make sure that I have the same permissions set on all folders, using the "Apply To All folders" option in "View".

Lords usually don't need a reward, but if it's in my collection of a terabyte of tunes, it's yours. Send PM. TYVM.

"One Of Many"