I haven't seen past suggestions to the problem, so I don't know what you
have tried so far. I also don't know the solution for the problem, as I
have not experienced it myself. But I do understand your concern; a mail
client that does not save your sent messages is virtually useless!

If I were in the same situation I would try two things:
- delete your profile, recreate it, and try again.
- try Outlook in Safe Mode (outlook.exe /safe) and see if it still happens

- Check your rules.  Try disabling them all when sending a test
e-mail.
- Check the view on the folder (i.e., which view and the definition of
that view).
- Check the option as to where a copy of the sent item is saved.  It
may not be into the Sent Items folder and instead in the same folder
(other than Inbox) where the original message was put.  This applies
to replies.  It was not clear if the problem occurred for new messages
or only when you reply.
- You mention both Outlook 2003 and Outlook 2007.  There can be only
ONE instance of Outlook installed in an instance of Windows.
- Pat's suggestion of recreating the mail profile is effectively
trying to get you to create a new .pst file.  You don't need to create
new mail profile for that.  If the problem is a corrupted message
store (.pst file), you can exit Outlook, rename the old outlook.pst
file to, say, oldoutlook.pst, and restart Outlook which will complain
that it cannot find the old .pst file.  Don't bother to point at the
old .pst file and instead create a new one.

Note: The same question or symptoms by others does not equate to the
same *cause* of YOUR problem.  Trying to lump yourself in with others
to garner extra attention will probably do the opposite and get you
more likely to be ignored.  Don't expect respondents to wander around
trying to build up the context of your situation trying to find what
are the "suggestions so far offered" from other posts or wherever you
saw them.  Not describing what were those other suggestions or what
you have already tried means respondents end up duplicating your
previous efforts.  Detail YOUR problem if you want someone to offer
help on YOUR problem.  Also, few users return to report if a
suggestion worked or not, so an unclosed thread is simply an abandoned
thread by the original poster.  You won't know if one of the
suggestions worked for that user.

Read:
http://66.39.69.143/goodpost.htm
http://support.microsoft.com/kb/555375
http://users.tpg.com.au/bzyhjr/liszt.html

If the problem persists and "if" there truely is not a cure at this time
because you all have exhausted all ideas, couldn't she cc herself in all
messages and when they come back to her, put them in a temp folder?

The basic reason for having the sent messages save is for proof you sent the
correspondence, correct? I agree a browser is useless if it wont save but
actually we really don't need all sent  messages saved. In the personal
sector anyway with all the chain letter junk anyways. Therefore, if she
adopts this culture, she will truly only save the needed sent messages.
Furthermore, she could set up sub folders to her inbox, categorized
according to the programs "subjects" she sends to.

Is this an option or is this just a wacked out way of organization for me?