A family of Microsoft word processing software products for creating web, email, and print documents.
What folders are you trying to move where and how? Windows 7 does not stop you from moving folders, it merely makes more checks to ensure that you know what you are doing. Windows Explorer works much like it did in other versions.
You did not need to add the PDF function. It would have been included when you updated Office 2007 to SP2 (which if you have not yet done, you should).