Outlook Spam – “The Cached Exchange Mode” connection

If you have Microsoft Exchange in your organization and the Outlook client was not configured for Cached Exchange Mode, the junk mail folder might not work properly. The reason is: in order for the junk mail folder to work properly, the Cached Exchange Mode box should be checked on the Exchange Server Settings (in order to do that, open Outlook, Click on TOOLS, E-Mail Accounts, click on View or change existing e-mail accounts, and click on the change button associated with the exchange profile you created. The Exchange Server Settings windows should open; make sure the Cached Exchange Mode box is checked)
After the cache mode is enabled, you can change the level of filtering for the junk mail. By default it is set to Low; if you still get spam emails, you might want to try changing it to HIGH and see if the situation improves

Good Microsoft article to complement this issue: http://support.microsoft.com/kb/823920


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