Version: 1.12.1 (using 4.3.2 (KDE 4.3.2), Debian packages) Compiler: cc OS: Linux (i686) release 2.6.30-1-686-bigmem When right clicking a folder, activating "move folder", and choosing some target folder, I can move my mail folders. This seems to work for every target folder - except the upmost "Local Folder".
Confirmed. System: KMail Version 1.12.2 Gnome 2.28.1 Ubuntu 9.10
BTW, a workaround is to drag & drop the folder to the topmost folder, then select "Move folder" in the context-menu that appears.
*** This bug has been marked as a duplicate of bug 197382 ***