Be sure that you get what you want!
When a file is deleted by the user he might want to reload an older version
of
that file the next day.
We once set the "Versions Data Deleted" to 1 and got caught by a user who
had a bad file, deleted the file and called helpdesk the next day to restore
the
file as of 4 days ago.
Now we have the following setting:
        Versions Data Exists: Unlimited
        Versions Data Deleted: Unlimited
        Retain Extra Versions: 30
        Retain Only Version: 60
During a period of 30 days we keep all versions. When a file is deleted the
now inactive versions are expired during the next 30 days. The last version
is kept for
90 days.
Our users can restore any file within (at least) 30 days whether the file is
active or deleted.

Kind regards
Thomas - broken English perfectly spoken - Rupp