'Undo' no longer working in Outlook inbox after a message delete

I've been using Outlook 2010 for a couple of years; I used to occasionally use 'Undo' (or ctrl-Z) to bring back a message I had just deleted from Inbox after reading it. It was a limited undo - I could only bring back the one message - but it did get back
a single message if I had just been a bit too hasty with the Del key.
Now recently that no longer works - instead of getting the message back, after a few seconds I get a dialog message "Cannot undo. Operation failed. The item was either moved or deleted after it was copied, or you do not have permission". If I go
to the 'Deleted Items' folder the message is there and can be either opened or dragged back to the Inbox, so I can get it back but it is a nuisance to lose the quick undo.
Has this behavior been changed by a software update? I don't believe I have changed any account settings or Outlook option settings, but if this is controlled by an option can someone point me to it? I've tried searching the 'Help' and found nothing relevant.
Thanks in advance
Steve M.

I suspect that you have only downloaded message header and the headers that were not yet downloaded remain marked for deletion, and there is not an option on the
Edit menu to undelete the selected item.
Go to Define Send/Receive Group and set download message completely for your account.
http://support.microsoft.com/kb/281366
When you delete a header and delete a downloaded message item, it is two distinct processes. When you click an item and either drag it to the deleted items folder (in Microsoft Outlook) or click the
Delete button, the item is moved from the Inbox folder to the Deleted Items folder. If you click
Undelete, it moves the item back. If you delete a header (the item has not yet been downloaded), it only marks the item for deletion. Until the command to delete is sent back to the e-mail server where the item still remains, the item is not
un-marked for deletion. This is the difference between client-side processing and server-side processing. Until the server receives the command to delete the message, the item remains marked for deletion. The only way to "unmark" the item is to right-click
that item, and then click to select Unmark selected headers.
Tony Chen
TechNet Community Support

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