iPhone 4 - iOS 4.1; GW 8.02; Mobility build 115

When an email is deleted from the inbox on the iPhone, it is not deleted from the GW Client (Mac or Win, online or caching). On the client, the message is only marked as read. On the iPhone in the list of mail folders, there is a Trash folder where messages land when they are deleted from the iPhone, and there is another Trash folder further down the list of folders which is the GW Trash folder (messages deleted from the GW client land here).

If this was an IMAP setup on the iPhone, I would just map the trash folder in the iPhone settings; however, that is not an option when setting it up as an Exchange client (all of the magic is supposed to be automatic).

I've tried deleting the account from the iPhone (multiple times), but the behavior always resumes immediately. I've also tried deleting the account from the Mobility server - no change.

Any suggestions?