Inbox and associated folders in Windows Mail

Newbie here!
Hope you can help with this frustrating problem. Had to delete and set up a new email account in Windows Mail (my ISP is SKY) because I had to re-install Vista. Followed the Sky instructions and was up and running, however, when I open up Mail, I now have in the folder list, the Local Folders of Inbox, Outbox, Sent etc I also have an imap.tools.sky.com folder with its own Inbox, Outbox etc etc.
When I send/receive it automatically goes into the imap Inbox and when I delete it it disappears completely, doesn't go in to the Deleted Item folder so cannot retrieve it if I needed to.
Do I have to live with these two Folder Lists? Why can't things be simple and return to their original settings?
Many thanks

Welcome
That is how IMAP works. The mail remains on the server, when you Delete it is gone. The alternative and what you were use to is POP3. If your email service also offers POP3, set it up in that fashion.