this is working fine for me

Code:
Private Sub btn_moveup_Click(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles btn_moveup.Click
        Dim index As Integer = lst_clients.SelectedIndex
        lst_clients.Items.Insert(index - 1, lst_clients.SelectedItem)
        lst_clients.Items.RemoveAt(index + 1)
        lst_clients.SelectedIndex = index - 1

    End Sub
    Private Sub btn_movedown_Click(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles btn_movedown.Click
        Dim index As Integer = lst_clients.SelectedIndex
        lst_clients.Items.Insert(index + 2 , lst_clients.SelectedItem)
        lst_clients.Items.RemoveAt(index)
        lst_clients.SelectedIndex = index + 1
    End Sub