Move folders used by Photoshop Elements 8

I am running Photoshop Elements 8 using Windows Vista.
Last year, I installed PS8 on my new computer and restored a backup from my old computer. Everything worked fine but I noticed that my root photo folder (named Jpegs) is now 9 levels down in the file structure with many levels of folders below the Jpeg folder (see path below).
Jpegs folder is located at:
C:\Users\New_computer_account_name\Pictures\Adobe\Documents and Settings\Old_computer_account_name\My Documents\Old_computer_account_name\Pictures\Jpegs
It appears to me that last years installation of my backup used the full folder path from the old computer and added it to the end of the path on the new computer.
What do I need to do to move the folders up in the folder path so that they are easier to get to other than using a shortcut?
I am assuming that the photos will show up as missing if I just move folders using windows and will have to go through a long tedious process of reconnecting them (have over 10,000 photos cataloged).
Would it be easier to do a full backup, delete all the folder below perhaps the "Adobe" folder then try a restore to get them only a few levels down?
What is the easiest and safest way to move my photo folders up a few levels and at what level in the folder structure should they be?
I have search your forum and the Adobe help fiels but cannot find an answer to my particular question.
Thanks in advance
Farmer76

Hi Farmer
You must move folders within PSE8.
Open the Organizer and click on the Display button (near the top right) and change to Folder Location.
Expand the tree in the left hand panel to show the full folder structure.
Highlight a folder and drag it to Pictures (normally the watch folder) or a folder of your choice.
The destination folder will highlight as you hover over it and you can then release the mouse.
When complete click the Display button and change back to thumbnail view if that is your preferred default.

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