OL2007+Exchange: Sent items disappear if i move them to another folder...! Help!

[kp]

I'm seeing a very strange issue with my Outlook2007 (against
Exchange)...
Sent items disappear if i move them to another folder...!

Steps:
1. Send an email. Sent email gets saved under Outlook's default
"Mailbox\SentItems" folder.

2. Go to that SentItems folder, and move the mail to another folder
(let's say "Foobar") under your inbox.

3. Go to "Foobar", make sure mail is still there.

4. Let Outlook Sync up with Exchange server (or hit "Send and
Receive").

5. You will notice that the mail disappears... !

I did a full text search in my mail box.. couldn't trace the lost mail
anywhere!

Interesting thing is, i have another machine that runs Outlook2003,
against the same exchange server.
I do not see this behavior on that machine.... "Sent Mail" remains
intact even after i move it to another folder and even after OL2003
sync's up with exchange.

Also, the above behavior is not reproducible on an OL2007+POP mailbox.

It only seems to happen when i point OL2007 to an exchange server.

I did a lot of search on the web to see if this is a known issue in
OL2007+Exchange. But i did not find any references.

Any help is greatly appreciated!