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Exchange 2007 public folder contacts disappearing

We have a client with a Small Business Server 2008 install (Exchange 2007) and we have an issue with Public Folders and contacts.

We have created a public folder for contact items, and they periodically disappear.  It has happened at least twice now.  After the first time, we changed retention on deleted items via the public folder management console to 14 days, but it shows nothing to recover 1 day after the deletions occurred.

To make it even more odd, it looks likes any contact items that were edited/saved manually in the public folder did not disappear, but all items that were simply dragged by the users from their own outlook folders to the public folders and then not edited or manually entered into the public folder in the first place were the contacts that disappeared.

We have no explanation why the retention did not work, and have spoken to the 3-4 users in the office who swear they are not deleting contacts.

Any help is appreciated.
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