Cannot Undelete Emails

I am using OL2007 with Windows XP-SP2. I cannot to a POP server for e-mail.
If I delete an e-mail from my inbox, it appropriately goes to the Deleted
Items folder. However, if I try to undelete an e-mail from the Deleted Items
folder, it will not work. I have tried hitting CTRL-Z after deleting an
e-mail to undo the deletion, but the e-mail stays in the Deleted Items
folder. If I open up the Deleted Items folder and drag the e-mail to another
folder, it still remains in the Deleted Items folder. The only way to
recover the e-mail is to copy it and then paste it into the folder I want it
to be in.

Has anyone else seen this issue? Is there a new setting that I am missing
that prevents recovering deleted items?

Thanks,
Merg

--
Today's problems don't worry me,
I haven't solved yesterday's yet.