When you are in the Library you can drag folders to a new location using the Navigator panel on the left. You can create a new folder by right clicking on an existing location, or by clicking on the plus sign to the right of the word Navigator. You can also drag and drop images to a new location from the main photo grid. I always use Lightroom to move photos, so the physical location and the information in the LR database stay in sync.

Visit my Nikonians gallery.