mv does not mean you moved it. It means it got renamed.

e.g. mv x x.bkp means file x got renamed x.bkp.

So when you did -> mv ../lib* . from  /local, I believe the files with beginning with "lib" became ".".

I believe cp would have copied the files.
 
So I think booting the server with a live cd, then mounting the file systems and then doing,

cd  to /local

then doing mv again to all the renamed files might help.

I guess I would make sure how the files will get renamed back by checking the contents of the . dir...

What do you have under /lib? are there files simply named "."??

K'dude