Hey Karl...
I was using the panel attempting to move a folder that contained two levels of folders then images... the panel was processing for a long time before I had to close it.
Next I attempted to open my test site... test.merelyafleshwound.com but it opened to a blank white screen.
I then opened my ftp client and noticed that there the panel had created a bottomless pit of folders(containing images) within the folder I was attempting to move.
For example... here is the folder structure....
Parent1
Sub1
Sub1.1 (contains images)
Sub1.2 (Contains images)
Sub2
Sub2.1 (contains images)
Sub2.2 (contains images)
...
...
then within Parent1 there was another copy of Parent1 and all of it's sub folders... this went on infinitely... or at least until I closed the browser. It created hundreds of iterations of directories.
I don't want to try to recreate this as it would have filled my server with files.