The file(s) in question are corrupt. Meaning that some where the HD blew a bad block and the file went bad. Yep, 1 stinkin file hangs and yep the OS should just allow you to move it.
As for applications. Most of them come packaged in the .app form so you just move 1 magical file instead of hundreds. The other files you are tracking down are settings, extensions and such normally not a problem to run the program. I have never moved Office by hand but with a little googling you might find the directories you need to grab.
I realize that this is a pain to do by hand but you'll be happier in the long run knowing that you don't have pounds of dirt hiding in your fenders
