This is what I found through help and support. Reverse the directions to not permantly delete items. Also check your storage size. If it is full, anything new will be permanantly deleted.
"To remove items permanently when you delete them
On the desktop, right-click Recycle Bin, and then click Properties.
Select the Do not move files to the Recycle Bin check box.
If the Do not move files to the Recycle Bin check box is selected, you will not be able to recover any items that you delete.
You can also remove an item permanently by holding down SHIFT while dragging the item to the Recycle Bin.
If you want to use different Recycle Bin settings for different drives, click Configure drives independently, and then click the appropriate drive tab to change the Recycle Bin settings for that drive.
If you want to use the same Recycle Bin settings for all drives, click Use one setting for all drives"
I am working on a small network of 3 pc's and a notebook. 2pc's and notebook run win xp, one pc runs win me. Now, whenever anyone on the network deletes a file, it dissapears without going to any recycle bin? Is there a setting I'm missing or can anyone tell me what's up?