Permenant Delete Item.. can it recover?

Yes, it can… by doing some regestry add / modification… please see this article

This topic explains how to use Microsoft Outlook to recover an item that was deleted from an Exchange mailbox. Deleted item retention must be configured on the server. Otherwise, there will be no deleted items stored in the dumpster available for recovery. By default, the DumpsterAlwaysOn registry key is set to 1 in Outlook 2007, so all folders are enabled for deleted item recovery. By default, all folders are recoverable on the Exchange server.

In Outlook 2003 and earlier versions, only the Deleted Items folder is enabled for recovery by default. All folders are recoverable, however, you must enable the ability to see the items in the dumpster. You must use the DumpsterAlwaysOn registry key to recover hard-deleted items, which are those items that were deleted while holding down the SHIFT key and that were never moved to the Deleted Items folder.

1. On the client computer used to perform the deleted items recovery operation, click Start, click Run, type regedit, and then click OK.
2. Locate, and then click the following registry subkey:

   HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Exchange\Client\Options

3. On the Edit menu, point to New, and then click DWORD Value.
4. Type DumpsterAlwaysOn, and then press ENTER.
5. Double-click DumpsterAlwaysOn.
6. Type 1 in the Value data area, click Decimal in the Base area, and then click OK.
7. Close Registry Editor.
8. Restart Outlook.

Link : http://technet.microsoft.com/en-us/library/aa997155%28EXCHG.80%29.aspx