IMAP and Filters not working?

I am having a problem with filters.

I paid for my copy of Pan, inserted the user name and code, Pan closed and I relaunched it.

When creating a filter I did this:

Right clicked on an email

clicked FILTER under make

clicked INCOMING and MANUAL

left the FROM box alone

clicked SUBJECT and ANY RECIPIENT to turn them off.

MOVE TO: Circulars

hit MAKE FILTER

then I went to Message > Apply filters > All Applicable... And nothing happens....

What am I doing wrong?

Thanks!

EDIT: I am wondering if the emails have to be copied to the LOCAL inbox and then filtered back onto the IMAP server's folders?

UPDATE:

EDIT: I am wondering if the emails have to be copied to the LOCAL inbox and then filtered back onto the IMAP server's folders?

DEBUNKED!

That didn't work. =[

Chris