Yes, that is correct, you have deleted the files from the player and they are officially gone.
More details:
- It is a known bug in the new beta. It does not happen on the non-beta version 1.03. It was reported on this BBS in several places at least a week ago.
- It only happens when you MOVE files on the player, not when you copy them.
- It only happens after you have deleted a file using the latest beta, and you checked that little box which says "I always want to delete files on the player whenever I delete them from a playlist". (I forget the exact wording of that box.)
- From now on, that little box you checked also deletes files that you move, too (gets over-zealous.)