In my testing, this setting on a folder is not honored, event though Symantec KB says that it is.
By default, (Outlook2k3), user created folders have the "Do Not Archive" setting automatically. An archive run (everything, all message types, deleted items) in fact archived ALL items that were moved from Inbox to a newly created folder with this setting. No harm, no foul...I actually would prefer the setting to be ignored.
I'll say this much...EV is an interesting product!