"You cannot archive items in this folder because it is managed by Microsoft Exchange Server."
Exchange 2007 and 2010 have a feature called Exchange Managed Folders. When configured and a manual archiving request is made, the referenced error is returned.
Outlook folders are identified as being managed by a Managed Folder policy by additional MAPI properties that are added to the folder(s).
PR_MANAGED_FOLDER_COMMENT
PR_MANAGED_FOLDER_ID
PR_MANAGED_FOLDER_INFORMATION
If a mailbox is removed from a Managed Folder policy, these MAPI properties are not removed from the folders within the mailbox, consequently, this error will still occur.
An alternative to the afore mentioned policy change, it is possible to affect the mailboxes individually by removing the Managed Folder MAPI properties from the mailbox.
Note: This is only applicable if the mailbox has been removed from all Managed Folder polices.
To remove the Managed Folder MAPI properties from the mailbox:
1. Start the Exchange Management Shell.
2. Type the following command:
Set-Mailbox -Identity "DOMAIN\USER" -RemoveManagedFolderAndPolicy
Note: This will remove all folders that were managed in this mailbox unless current data resides in those folders. If items do reside in a previously managed folder, the Managed Folder MAPI properties will be removed, leaving a standard folder.
See the following Microsoft Article for details:
technet.microsoft.com/en-us/library/aa998580%28EXCHG.80%29.aspx
Turning Off Messaging Records Management
Once the Managed folder MAPI properties are removed from the associated folder(s), this change must be updated to Enterprise Vault (EV). This is performed during Shortcut Processing of the associated Mailbox Archiving Task.