Rules cause bad Entourage 2004 Behavior

[boxed11]

I have just upgraded from an other Win2000 system with Office 2000, to
a PowerBook G4 with Mac OS 10.4 running Office:mac 2004. After working
out the lack of "move" behavior on drag-and-drop of e-mail into offline
folders, I setup the same rules I had on the Win2000 system.

Immediately after setting up these rules, all incoming e-mail messages
which the rules did not apply, are moved to the Deleted Items folder.
I have checked the construct of the rules several times, and cannot
figure this one out.

These rules are setup under the "Mail (Exchange)" tab. Entourage is
connecting to a Windows 2003 server, running Exchange Server 2003.

Here are the rules I have setup:
ITN: If all criteria are met; subject-contains=dc28.itn, then Move
message to the -itn offline folder, do not apply other rules to
messages that meet these criteria, Enabled

DC28.0: identical to above, but DC28.0 is the criteria, offline folder
..0 is the target

DC28.10: identical to above, but DC28.10 is the criteria, offline
folder .10 is the target

DC28.20: identical to above, but DC28.20 is the criteria, offline
folder .20 is the target

DC28.30: identical to above, but DC28.30 is the criteria, offline
folder .30 is the target

System:
PowerBook 1.67GHz G4 15" 1GB RAM
Mac OS 10.4.1
Microsoft Office:mac 2004/Entourage 2004

Thanks,
tom b.