Files in watch folder not moving to "Sources" after being processed

Files are not moving from the root of the watch folder into the "Sources" folder after being processed, which results in the files getting re-processed everytime AME is re-opened.
I just upgraded to Creative Cloud from the Production Bundle 5.5 with no changes in hardware/software config, so it's not that, however since I'm new I'll walk through the checklist:
Version: 6.0.3.1
Other applications installed: Premiere, Photoshop, Lightroom, AME, After Effects
Recent updates installed? Yes.
OS: Windows 7 64-bit, all updates applied.
Using AME through Creative Cloud? Yes.
Source footage: Avid DNxHD exports from timeline in .MOV container
Error message(s): None.
Error present in specific output format/encoding preset? No. It's a global issue.
What were you doing when the problem occured? Relaunching AME.
Has this ever worked before? Yes, in CS5.5 Production Bundle's AME.
What other sofware are you running? At the time, nothing.
Third party codecs? Nope, other than the ones that Avid installs during it's own application installation.
Computer hardware: *sighs* i7 3770k, 32gb ram, asus motherboard, gtx 570 graphics card, a bunch of hard drives, no third-party hardware.
MPE Acceleration in Premiere: Not really relevant in this issue, but yes, when I use Premiere I use MPE.
Is anyone else running into this issue?

siva,
can you check the url in SLD for the related business system. It should be 8000 also and not 50000(i had a similar error and it was resolved by changing the URL in SLD.
is your DB up?
thanks
tony

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