The following error is generated by FSAUtility:
"Error: There are no archives under the source path \\FileServer\Share\Folder1 that can be migrated"
You cannot use the -PM switch with on a folder that is NOT the root of the archive i.e. does not have an Archive Point.
For Example \Folder1 has an Archive Point. A sub-folder exists called \Folder1\Folder2 and contains placeholders. The error described will occur if you attempt to run with the -PM switch against \Folder2, but will work against \Folder1.
It should also be noted that simply then creating an Archive Point on \Folder2 will not resolve this, as the data has already been archived on the original Archive Point, existing on \Folder1.
Using FSAUtility with -pm will move whole Archive Points (archives) from one volume to another, including all placeholders below the Archive Point. If you want to move part of an Archive Point you will need to use -m as you are effectively splitting an archive.