FAR Manager can create symlinks using Alt+F6, also the linked folders will be marked with <link>
which makes it easier to spot them. Don't know about Windows 7, but in previous versions of Windows, using Explorer to delete a symlinked folder would lead to catastrophic results such as deleting the actual target folder.
To alias files (not folders) you could use: fsutil hardlink create <new filename> <existing filename>
so in W7 this could work too.
If FAR Manager is not good enough for you, then you could symlink folders with the junction command line utility by Mark Russinovich, e.g.:
junction d:\symlinked_folder c:\winnt
And no, you can't actually 'move a folder using junction', a junction is just an alias for another folder which the client applications would see as 'the real thing'.