IE/OE7 - XP Pro
I've done a little reading on this "To Free up space OE can compact...."
and the fact that I can do a manual folder compact. How can I prevent the
deleted/compacted stuff from going into the Recycle Bin?

I did a manual All Folder compact 3 consecutive times, no other action
between
the compacting, and each time 82 items were placed in my Recycle Bin.