This functionality was working but stopped. I can move by right clicking the mail item and selecting Move and then selecting my archive folder.
After a bit of research all you need to do is press the Esc key a couple of times and the drag and drop functionality returns!
After you have moved an Outlook account and associated .pst file to a different location or PC you may receive this error after you try to Send/Receive mail.
I found that the problem was caused by the expected delivery locations for the send/receive process.
I found that by changing the folder to specify a different inbox, applying and then selecting the correct inbox and applying fixed the issue.
– In Outlook 2010 click File>Account Settings>Account Settings
– Select the relevant account and click Change Folder
– Select a different location and apply
– Select Change Folder and select the correct Inbox location
The send/receive process should now work