Your symptoms indicate that either you are connecting to the Exchange server
as a POP account or you have a Personal Folders file set as the default
delivery location. The correct configuration in Tools | Email Accounts would
be to use the Exchange service to connect to the server and deliver to the
Exchange mailbox.
--
Sue Mosher, Outlook MVP
Author of
Microsoft Outlook Programming - Jumpstart for
Administrators, Power Users, and Developers