You are probably doing it wrong.
What SPECIFIC folder are you interested in ?
"Report 2010" as in your for post, or
"2010 Reports" as in your latest post
Does the folder name actually have exactly one embedded space ?
I suggest you CD to the parent folder and issue the commands
CLS
DIR "c:\documents and settings\folder1\* Reports"
If that finds the folder of interest, then try
xcopy "c:\documents and settings\folder1\* Reports\*.doc" \newFolder /S /E /L
If you still have problems, I suggest a screen dump of the CMD.EXE display,
showing both of the commands and the responses to the commands.
To get a screen dump, right click on the CMD screen and "Select All",
which changes the display to Black text on White Background,
then Left Click and the display is restored to White on Black,
and the contents are in your paste buffer.
Then reply, and click the "Insert Code" button (Looks like a '#') and paste.
That will ensure we can clearly see if there is a problem with too many spaces.
Note, "*xyz" can include "* xyz", but not the other way round
e.g.
C:\Documents and Settings\Dad>dir "\*ro* File*"
Volume in drive C is ACER
Volume Serial Number is EC16-8702
Directory of C:\
15/03/2010 17:17 <DIR> Program Files
0 File(s) 0 bytes
1 Dir(s) 9,291,087,872 bytes free
C:\Documents and Settings\Dad>dir "\*ro*File*"
Volume in drive C is ACER
Volume Serial Number is EC16-8702
Directory of C:\
15/03/2010 17:17 <DIR> Program Files
0 File(s) 0 bytes
1 Dir(s) 9,291,087,872 bytes free
C:\Documents and Settings\Dad>
Alan