Hi Budgie
I can confirm that provided your administrator configures the Exchange server for IMAP (Mail uses IMAP to connect) that yes, Mail can be used effectively with Exchange and messages will remain on the server; though the set up can be misleading.
For me at least, when you get to Outgoing Server Settings, the set-up panel does not allow you to enter an authentication type, and entering my user name and password will get the following response:
The SMTP server âxxxxx.xxxxxxxxxxxxxxxxxxx.com:usernameâ is not responding. Check your network connection and that you entered the correct information in the âOutgoing Mail Serverâ field. If it still doesnât respond, the server might be temporarily unavailable.
If you continue, you may not be able to send any mail.
When I click continue, the authentication panel comes up, and by changing authentication to NTLM and entering the Domain name - everything works perfectly!
The only other nuisance is that Mail looks at the Exchange Calendar and Personal Folders/Contacts folders as mail folders, but cannot display the contents in the way Outlook or Entourage does, and I have not found a way of eliminating them from the folder list.
I hope this helps.