E-mails being delivered to Inbox under On My Computer

I'm an IT technician and I'm working with a client who has exchange set up on her Outlook 2011.  Some how, some of her e-mails are getting moved to the Inbox under "On My Computer" folder.  I don't see a pop or IMAP account anywhere in her settings nor do i see any rules set up to move items to On my computer.  I've never seen this before.  I tried looking through every setting to see if there is a way to change where e-mails are delivered and I tried seraching online for solutions but no luck.  A few more things to add.  She's running OS X Lion and using Outlook 2011.  Also, her sent items are found in the inbox under On My computer as well.  Please advise.