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The problem actually lies within Microsoft Exchange Server. Exchange 2003 puts a 32 KB limit on the memory footprint for the rules of a given folder within an inbox or public folders. Unfortunately, this can only be changed with third-party software. For more information, see the Microsoft Knowledge Base article, Maximum number of rules per folder in the inbox or in a public folder in Exchange Server 2003, Exchange 2000, and Exchange Server 5.5.
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