Some day, one of my users experienced his Deleted items folder changed into a recipient name. Still got no clue what’s the cause of it. However, you are unable to change this folder name by yourself, even if you are setting permissions on the Deleted items folder by PFDAVadmin.
Solution
Close Outlook.
Go to Start / Run and type: outlook /resetfolders
Or use the full command line:
x86:
%ProgramFiles%\Microsoft Office\Office12\OUTLOOK.EXE /resetfolders
x64:
%ProgramFiles(x86)%\Microsoft Office\Office12\OUTLOOK.EXE /resetfolders


/resetfoldernames was the flag that worked for me…thanks for helping me get on the right track!