These are certainly *not* known UW imapd issues. We have people who move messages in and out of INBOX all the time; and if you are using mbx (as opposed to mbox) format it shouldn't matter if there is still an old imapd server process since mbx is a shared access format.
Have you tried using other clients, such as Pine, and try to do the same things? If it works in other clients, that would strongly suggest an Outlook problem or possibly a problem in how you use Outlook.
