The following may also help:
As SD said, to alter delivery settings:
TOOLS - ACCOUNT SETTINGS (Select account) - MORE SETTINGS - ADVANCED (alter delivery settings to leave on or remove from server as required)
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All Outlook data is held in a .pst file which, by default is named Outlook.pst or, in Outlook 2007, Personal Folders.pst
You may rename them if wished.
They are located at:
in XP (if I remember correctly)
C: \Documents and settings/Local Settings/Application Data/Microsoft/Outlook/Outlook.pst
in Vista:
C: \users/[usename]/application data/local/Microsoft/Outlook/Personal Folders.pst
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The following from Outlook Help:
To reduce the size of a .pst file
If you delete items from a Personal Folders file (.pst) , the size of the file will not change unless you compact the file. The procedure to compact the data file might take several minutes.
On the File menu, click Data File Management.
Click the data file that you want to compact, and then click Settings.
Click Compact Now.
Note You do not have to exit Microsoft Office Outlook after you compact a .pst file.
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If you are using a Microsoft Outlook Personal Folders file (.pst) that was created in Microsoft Outlook 97-2002, you can switch to a new data file format that is the default in Microsoft Office Outlook 2003 and Microsoft Office Outlook 2007. The new .pst file format, called the Microsoft Office Outlook Personal Folders file (.pst), offers greater storage capacity for items and folders, and supports multilingual Unicode data.
There is no automated procedure to convert a Microsoft Outlook 97-2002 Personal Folders file (.pst) to a Microsoft Office Outlook Personal Folders file (.pst). The easiest way is to create a new data file in the Microsoft Office Outlook Personal Folders file (.pst) format and import items from the Microsoft Outlook 97-2002 Personal Folders file (.pst) file into the new file.