New to Exchange, question about mail on server and local pst files

Im a notes guy but one of my clients went from Notes to Exchange and when configuring Outlook, I noticed all the mail is copied down to a PST and then deleted off of the server.  I thought by default, email in exchange stayed on the server.  It seems the powers at be didnt want to keep mail on the server because the exchange server is in the Far East and the users are in the US and they thought it would be faster this way.  The problem I now see is that the mail files arent being backed up.   Is there a way I can modify the clients or is it an option set on the exchange server which I have no access to?  Its pretty much working like a pop account.  Thanks in advance.
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Hi, there is a setting in the Outlook client to control where the e-mail is delivered. Look for the setting "Deliver new mail to the following location". You should find this is set to the personal folder rather than the mailbox. This setting can be found under the Tools > Email accounts > View or edit account > Next in Outlook 2002. I can't remember the exact location under Outlook 2000 but its similar.

You could also set up a backup of the local PST files see -

I've created a similar thing in the past where users run a desktop shortcut and it backs up the PST to their home directory on the server so that it can be backed up in the nightly backups.
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