Yes, it is possible and rather easy to test this without any need for a full or partial restore.
You can test it out in both ways: either by using the TM interface and opening a backup from any date that is listed, or by dragging and dropping a backed-up folder from a Finder window. Again: any file by itself can be restored flawlessly, but one can not (always) restore a whole folder together with its contents (see below which folders can be restored without a glitch and which ones cannot).
When trying to restore a folder together with its contents in one go, be sure to choose a folder that you have created yourself in the past (*before* Lion was installed on your system!) and that has been deleted by yourself (so it's not present anymore on your current system, except on TM's backup drive).
Now simply go into the TM interface and browse back to the chosen folder, select the folder and then click on "Restore". If you use the alternative method by opening a Finder window, opening TM's backup disk, and then browsing all your way through to the folder in question, you can simply drag & drop that folder onto your desktop and wait to see what happens.
The folder itself will indeed be copied to your desktop but all or most of its contents will not because a pop-up window will open and tell you that "The operation cannot be completed because you don't have permission to access [filename]"... The result is that the copied folder on your desktop remains empty or (sometimes) contains a few of the files that reside within.
Try to restore several different folders from several different locations, all to your desktop, and see what happens. Try also folders that were created recently (after Lion was installed). Some folders are restored flawlessly, others are not.
It seems to be very random... but it isn't! Folders containing files that do *not* have the "Fetching..." group in the Sharing & Permissions list of their "Get Info" window, but instead have the "wheel" group listed, will not be restored with their contents - only the empty folder itself will. Folders containing files with the "Fetching..." group listed in the "Get Info" permissions list, will be restored normally, with their contents.
To repeat it once more: restoring the files themselves from within any folder *will* always work. The problem happens when trying to restore "certain" folders with "certain" files within them, as a whole.
This is apparently a permissions' problem, but quite a weird one, because it's only happening within TM backups and only (so far as I can tell) when trying to restore complete folders with their contents. Anything else, e.g. creating, deleting, changing, renaming, editing... folders and files on my Lion system works flawlessly. Restoring complete folders from a TM backup is a mess.
One more clue pointing at a very serious permission problem for "migrated Tiger users" who are trying to restore folders from a current Lion TM backup, is that I have no problem whatsoever restoring complete folders together with all their files from a second user account that I created when my iMac was running Snow Leopard.
I seriously hope that the Apple Team is working hard to fix this very disturbing problem.