I use Lion on my Macbook pro 13". I would like to add a context menu item called "Move" or "Cut" (just like Copy) and when I go to the desired location and hit "Paste", it should Move the file/folder I selected and paste it there. Is this possible in Lion?
The short answer is no.
Assuming you may be an ex-Windows user, you cannot perform a "Cut" and "Paste" with files or folders in Mac OS X Lion, or previous versions for that matter like you can in Windows.
Your only option is to drag and drop to move, or "Copy" and "Paste" then delete the original afterwards.