Having researched the iPhone a lot before I purchased, I read that after the update email deleted on the iPhone can now be deleted on the server as well. That was a big factor in my decision to get the iPhone. I don't have experience with the OS prior to the update.
Here are my observations on the "delete" issue after tinkering with it for a day. Keep in mind that I connect to Exchange 2003. If you create an account on the iPhone using the IMAP button, email deleted on the iPhone is NOT deleted on the server. If you create an account on the iPhone using the Exchange button, email deleted on the iPhone IS deleted on the server.
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