I've been working with a few SCM's and IMHO only one of them really handles this really well. That's ClearCase. I'm well aware that ClearCase is not an option but I though it could still be interesting to know how this can be managed when done right.(I'm rather interested to know whether any other SCMs have a better solution to this problem, and if so what it is. It's not obvious how to do better.)
In ClearCase everything (both files and directories) are "elements". A directory is a version of an element and it contains versions of other elements. It's not very different from Unix and I-nodes although everything is of course versioned.
Subversion claims they handle moves pretty well. When I checked it out, it turns out that a move is a copy (versions and all) followed by a delete, thus maintaining version history at both locations. I'd recommend anyone who think CVS is insufficient due to file moves to investigate subversion.
Regards, Thomas Hallgren
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