The MOVE command is still incorrect. This is why I posted the actual full command syntax on the other forum.
The correct form of the command, for what you're trying to do, can be either of the following...
EXEC xp_cmdshell 'Move /Y C:\SomeFiles\*.* C:\SomeFiles\FileArchive';
EXEC xp_cmdshell 'Move /Y C:\SomeFiles\* C:\SomeFiles\FileArchive'
As for your privs problem, this is why I asked where the "C:" drive you're using actually is. You should answer the questions of people that are trying to help you.
The fact is, the command above, no matter which machine you run it from, is going to look at the "C:" drive of the SQL Server itself. Do you have privs there? I would think not. Such files should EVER exist on the "C:" drive of your server.