Office 2003 and prior does not cache external mail folders. Office 2007 caches external contacts and calendar only (not email) Office 2010 and beyond caches everything. This can be a problem if someone has a large archive mailbox and a small hard drive.
There are two solutions:
HKEY_CURRENT_USER\Software\Microsoft\Office\14.0\Outlook\Cached Mode
and set CacheOthersMail = 0