Update 7/14/11: When contacting Microsoft Customer Support to obtain the Interim Update, you can reference KB 2581545 (please note that the article will be available at a later date on support.micr...
Updated Jul 01, 2019
Version 2.0
Blog Post
@Martijn Westera - all versions of Outlook exhibit this behavior with SP1 RU4.
@monkiibiz - When using the Outlook client to COPY a folder stored on an Exchange server to a different location (e.g., User Mailbox, PST or Public Folder) a new folder is created, however message items in the folder being copied, including sub-folders, are not created in the destination folder. If the Outlook client is used to MOVE a folder stored on an Exchange Server Information Store to a store of a different type (e.g., Mailbox Store, Public Folder Store or PST), a new folder is created, however message items in the folder being moved, including sub-folders, are not created in the destination store and the items are deleted in the source location. Items deleted can be recovered in the source location using the Recover Deleted Items functionality available within the Outlook client.
Ross