Problem uploading rules to the server

[Bettox]

One of my customers is experiencing a problem creating simple rules t
move messages from a particular email address into a different folder
One is into a folder he has created and the other is to the delete
items folder

About as basic as rules get I guess, but he is getting the followin
message

One or more rules could not be uploaded to Exchange server and have bee
deactivated. This could be because some of the parameters are no
supported or there is insufficient space to store all your rules

I can't believe that moving messages from one folder in his inbox t
another isn't supported. I have several rules myself doing exactly th
same thing

The MS knowledgebase refers to a 32kb limit for rules applying to
folder, but it also states that each rule takes around 660 bytes. Thes
is the only rules that my customer has set up so again the spac
limitations don't appear to be the problem

A link I found in Google suggested that setting the "on this machin
only" tickbox on would cure the problem. Unfortunately it didn't

Does anyone have any suggestions