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AutoArchive is turned on by default in Outlook 2007 and will actually remove some of the oldest files, you determine the amount of time, completely.

Open Outlook

Click on TOOLS > OPTIONS

Click on the OTHER tab

This opens up a whole menu of options and settings to pick from: for instance you can choose how often AutoArchive runs. In this example I picked 31 days. I also place a check next to "Prompt before AutoArchive runs" just in case there is something I do not want deleted.

This is also where you decide when to clean out old items and the location to move them to. Of course you can always select to permanently delete old items if you do not want to keep them around any longer.

Click OK and your settings are saved!