Litigation Hold, Single Item Recovery, & Mailbox Database Deleted Items Retention

Hello
I'm looking for a simple explanation of how the three features mentioned in the subject line interact and affect one another.
Specifically, I'm after the answer to the following question:
If a users mailbox has litigation hold enabled, and the mailbox database it lives on has a deleted items retention value of 365 days, does that users "Recoverable Items" get deleted after 365 days, or does litigation hold, as I supspect bypass the retention
value?
If Single Item Recovery is enabled for said user as well, and added to the scenario above - how does this affect the retention of the deleted items?
I cannot find a definitive article that describes mailbox database deleted items retention, litigation hold and single item recovery and their behaviours when used together.
Regards
Matt
Matt

Hello again,
Just wanted to open this thread up again, and gain some further clarification, specifically on the behaviour of items in "Recoverable Items\ Deletions" folder.
In the following scenario how will items be processed:
-SingleItemRecoveryEnabled -True
-LitigationHoldEnabled - True
-UseDatabaseRetentionDefaults -True
-Items in the Deletions folder have passed the retention value date as specified on the database.
Given the parameters above, when the I run the Managed Folder Assistant against a mailbox, I'm expecting to see the items in the Deletions folder move, and be placed in Purges folder.
This is not happening however, items are only removed from the Deletions folder when LitigationHold is disabled. Then, items bypass the Purges folder altogether and are removed from the mailbox/database altogether.
I referred to the article below for clarification:
http://blogs.technet.com/b/exchange/archive/2009/09/25/3408389.aspx#_Short-Term_Preservation_of
"...the message was not purged from the mailbox store. Instead the message was moved from the Recoverable
Items\Deletions folder to the Recoverable Items\Purges folder. All store hard-deleted items end up in this folder when single item recovery is enabled. The Recoverable Items\Purges folder is not visible to the end user, meaning that they do not see data retained
in this folder in the Recover Deleted Items tool.
When the message deletion timestamp has exceeded the deleted item retention window, Records Management will purge the item."
Can anyone assist in explaining the behaviour I'm observing?
I'm in a transition period where by our organisation has been journalling all
email to an Online service since 2008 and this service will continue to be used solely as our archiving and compliance mechanism.
Since Exchange 2010 was adopted by the company around 18 months ago, the previous mail administrator had litigation hold enabled on all mailboxes
from the outset, so I'm in the position now where by I have two retention methods running side by side.
Long story short, the online archiving will be used moving forward and litigation hold will be disabled within Exchange. 
What I want to do is transition from long term data
preservation inside Exchange, to short term preservation - hence the reason for now enabling SIR.
Currently I have mailboxes with 10's of GB's of mail sat in the "Recoverable Items\Deletions" folder, and very little, if anything in some
cases, in the respective "Purges" folder.....
Can anyone advise on a "correct" procedure for making this transition?
Regards
Matt
Matt

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