[ubuntu-za] Thunderbird and Gmail problem

[Wikus]

Lo All ,

I have an issue with Thunderbird and gmail. I have set up an gmail 
account in thunderbird using defaults.
Didn't change anything to the settings. Then I notice an "all mail" 
folder under gmail in thunderbird.
This folder keeps getting bigger and bigger with all mail that comes in. 
And no matter what I do , that mail
stays there. I delete inbox and all other folders (including all mail) , 
empty the trash. But the mail just comes
back there. I force delete (shift-delete) everything , but the mail just 
comes back automatically again.

I check on my gmail in the web interface online and there is no such 
folder there. So it must be on the pc.
I then see an option in TB's preferences to "Archive mail" in a folder 
called "all mail". So I think yay I found
the problem. I dsiabled that setting completely. Restart thunderbird. 
But still it happens. It is getting bigger and bigger
with all mail and it is gonna start wasting space. How do I get rid of 
that "all mail" thing ?

Screenshot:

http://www.mediafire.com/i/?tehq1j4f2afr86h

Ubuntu 12.04 , all updates
Thunderbird 12.0.1

Thanx

- Wikus