As googledesktop is not upto mark with finding all my moved outlook emails, i started to use Lookout outlook add-in to index all my outlook emails. It handles the moves just fine. I am not sure what it does with deleted outlook mails. (never checked).
Lookout was bought by Microsoft and Lookout does not work when you upgrade to Outlook 2007. It gives a nice message saying "Sorry!! It looks like another Outlook Plugin has installed an unofficial version of the Outlook libraries which breaks Lookout. Lookout will not be able to load. For more information, see this link: http://www.lookoutsoft.com/Forums/topic.asp?TOPIC_ID=10"
When you go to lookout site, it leads to windows desktop search. So basically i had to upgrade to windows desktop search as lookout was not supported any more.
I did not need windows desktop search as i use googledesktop search. I initially told myself to use the improved search in outlook 2007 and also use my googledesktop to find the emails. But the issue of moved mails got me to a stop.
I checked why lookout is not loading in Outlook 2007. It basically looks for a particular version of outlook interoperability assembly which if not found prints the message and does not load. I found this enabling debug on loading of assemblies in .NET.
May be the code which loads and checks the assembly version can be made to ignore the change. Then it would not crib and just load the new outlook interoperability assembly and it might run just fine.
Do any of these changes at your own risk. Don't forget to read the License agreement of lookout which says that "a) You may not reverse engineer, decompile, or disassemble The Software.".