I am also having this problem now, since (being forced to do) the upgrade a week or so ago. Worked fine before. Can't drag messages to one of those folders, and right click "move" will not recognise any of those folders, as noted by other users.
I would also note that when I did the upgrade, the "on my computer" folders did not appear as part of the upgrade. I had to notice that they were absent and then figure out how to import them. When I got to that point it was clear that Outlook knew they were there - just hadn't thought to mention it.
Finally, for several weeks before I did the major upgrade (so from say mid May), I was experiencing bizarre problems with my Yahoo.com email account. It would retrieve messages just fine, but if I deleted a message using Outlook it would completely clear the Inbox and then reload all of the messages (including the deleted one) from Yahoo. Following the upgrade my Yahoo account was missing in Outlook and I had to recreate it - after which the previously noted bizarre behaviour has disappeared.
I mention these things in case it helps in the diagnosis.
All in all I would have to say this upgrade was not MSFT's best work.