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Receives the error "Cannot remove folder Bart 9th Floor Remodel: The operation is supported only when you are connected to the server" while trying to move a folder on a network drive

A user receives the error "Cannot remove folder Bart 9th Floor Remodel: The operation is supported only when you are connected to the server" while trying to move a folder on a network drive (see the screenshot).

This happens even though the user's Windows 7 laptop is connected to the network and has logged onto the Server 2008 Small Business Server.

The folders that this user is trying to move are located on the Y: drive (which is set up to use offline files so that the user can work on these files while his laptop is not connected to the company network).

This error only happens when the user tries to move a folder. If the user moves just a single file, there are no problems at all.

What needs to be done to fix this issue so that the user can move files on the network drive without any problems while he is connected to the network server in his local office?
Unable-to-move-folder.JPG
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Yes, I'm sorry. It is a Windows XP computer.
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