Jason,

Can you please try the suggestion given in following question:

https://sharepoint.stackexchange.com/questions/1278/how-can-you-move-a-document-with-its-version-history-to-a-new-library

It says

> Just **moved** (drag & drop) a file in Explorer View from one document
> library to another, and it **did** retain previous versions!
> 
> Obviously both libraries need to have versioning enabled.
> 
> Try it yourself.
> 
> EDIT: **note that it ONLY retains the versions if you MOVE the
> files**. It does not do so when you perform a COPY!