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I notice that archived elements is stored locally on the computer.

But is it also stored on the exchange server?

Maclovin

Maclovin
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If you are talking about the message Outlook presents about Archiving old items, then no, it is only stored locally. It simply creates the Archive.pst file.

DanBig
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    Correct, that archive pst file is only stored locally on the machine it was made. Redgate and Sunbelt Software have Exchange email archiving solutions. – Hondalex Jul 14 '10 at 12:13