Just want to say that I see the same. I'm testing Gutsy on a new laptop.
Added a new IMAP account, but unable to assign labels to mail. On my
other laptop using Feisty (Evolution 2.10.1) everything seems to work
fine.

Problem is with Evolution 2.11.6.1 on Gutsy. In my setup I'm using
Dovecot 1.0.0 as IMAP server.

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Evolution: Applying a "Label" to an Email by right clicking on the message and 
selecting label doesnt apply the label
https://bugs.launchpad.net/bugs/127644
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