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 answer is yes, install TotalFinder.
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.
As commented above, both ⌘+option ⌥ + v Or option ⌥ + secondary click + paste work on Mountain Lion