Hi To All:

I really appreciate all the support efforts that you recommended
applicable OE compacting problems and I am
happy to report that I have found the culprit.

The problem is having Trend Penicillin, as outlined in their article
http://esupport.trendmicro.com/suppo...&id=EN-1031606

Thereby disabling Trend Micro Anti-Spam Toolbar resolved this issue.

Again thanks for all the great help!

Tom