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We just upgraded to exchange 2007 and so far everything has gone great, due to testing and a plan on our part. However, now that we've transferred all the users we've gotten complaints/mentions that the items that are in their deleted box are not clearing out automatically, or if they are they aren't clearing out like they should.

In the mailbox properties I've set item retention to 2 days, is there somewhere else that I am supposed to configure that? Deleted items should really be cleaned out regularly and it doesn't seem to be. Any ideas?

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Pretty sure I figured it out... Go to Organization Configuration -> Mailbox -> Managed Default Folders In that list there is Deleted Items, right click and click New Managed Content Settings and setup the retention to how you want. This appears to be what I want and is much more powerful then Exchange 2003. Rather exciting actually.

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