There's nothing about this tale of incompetence that's particularly incredible. A lot of privately-run businesses apparently have the same mess when it comes to e-mail archiving - central e-mail storage has restrictive quotas and users have a bunch of PST archives stored locally on their work laptops. It tends to come with running an Exchange server because central storage is expensive and hard to maintain. Don't think the manual printing and archiving of e-mails is terribly unusual either, though most places don't bother.