ive located the problem...it seems with FileVault activated, anything within the home directory is unmovable within the window...get info, delete and duplicate also do not work.
I started troubleshooting by closing out software, disabling startup items and rebooting a few times thinking it may have been a confliction with another wares...
Next I navigated down to the HD thru Yummy and was able to perform all the tasks fine, but once you get into the home area everything is locked.
I have filevault disabled now, and it all works fine...here is my system and software info to help you work this bug...let me know if I can help or if you need more info.
Mac OSX 10.3.9
1GHz PowerPC G4
2 GB DDR SDRAM
Yummy FTP
Version 1.1.5
Registered
Thanks for your help and good luck,
Brandon