Inadequate permission to save to OneDrive

I'm running Windows 8.1 and Office 365.

On trying to save a document to a folder within a File Folder within OneDrive I get the following error message. 

"You don't have permission to save in this folder contact your system administrator to obtain permission.

Would you like to save in the Documents folder instead?"

I can however save to what looks like the root directory of OneDrive whose properties menu tells me that it is a System Folder. 

Separately, if I go to windows explorer I can then manually move the files from the OneDrive root directory to the relevant sub-directories without any issue. It is a painfully slow process though. 

Any suggestions on how to correct this would be gratefully received. I am the only user on my PC and have set it up with only 1 Windows user account.