IMAP Setup - Microsoft Outlook
Solutions found here.

Note: When you delete a message in Outlook (at least 2000 and XP), it is not moved to the Trash folder, but instead is displayed with a line drawn through it, thus marking it as deleted. To permanently delete these message, use the Edit --> Purge Deleted Messages option.

Note 2: Sent items in Outlook are not by default saved in the Sent folder on the server. To set things up correctly, please follow the instructions in Microsoft Knowledge Base Article #198854 after setting up the account according to the following guides.