Windows 7 supports symbolic links via mklink command. I have a folder on one drive (E) linking to another folder on another drive (D). Opening the symbolic link folder and copying anything from that folder at least to the same drive causes TeraCopy to just throw its hands up and sit there doing nothing until cancelled.
The symbolically linked folder makes it look like it's on drive E, but it's not. TeraCopy even thinks so because the default operation is TeraMove as opposed to when copying from drive to drive and the default operation being TeraCopy.
TeraCopy is still an amazing program and this issue can be worked around by just visiting the folder on drive 1 directly.
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How to reproduce
Untested with symbolic links on the same drive. But here's how to do it with 2 drives.
On drive 2, create a symbolic link to a folder on drive 1.
1. Start elevated command prompt
2. CD to the folder on drive 2 you want to make the symlink.
e:\
cd bin
3. Create the symlink
mklink /D my_link d:\bin\stuff
Now, in explorer, go to drive 2 folder with the symlink. Open the folder (note that explorer still says you're on drive 2 unlike a regular shortcut). Try to copy any files from the folder to the same drive via teracopy. I right clicked and dragged to do a TeraMove.