Is there a way to exclude subfolders that are underneath the inbox from being processed when a MRM rule runs against a mailbox?

Hi, The behavior is by designed in Exchange 2007. This is a change from the behavior of Mailbox Manager in Exchange 2003. Now managed content retention policy defined on default folders applies to all messages located in it and its subfolders. In other word, MRM policy will include all the subfolders. This is by design and there is no publicly available article I found. But as per the internal documentation this issue might be fixed in Update rollup 5 for Exchange 2007 SP1 which is not yet released. Mike