If an issue has an original estimate of 40 hours and remaining estimate of 16 hours, when that issue is moved to the next sprint at sprint close, will there be a new original estimate of 16 hours?
No. These values won't change when an issue is moved to the next sprint at sprint close.
I seem to recall other scrum management tools like Version One doing something like that when "splitting" an issue, but JIRA Agile doesn't do that.
Well, not really, because you've still got the original estimate. If you decide it's completely wrong, that's fine, you can change the remaining estimate and still retain the information that your original estimate was not as good as it cold have been.
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