Thanks for your replies guys.
I have solved this problem a while ago, and I didn't receive any notification 
emails about your replies until now...weird, but never-mind that.

So, the reason why retention policy did not work - was because I didn't assign 
it to the client. I assumed that if retention policy is assigned to a pool, it 
will overwrite anything that a client may have. However, it is the other way 
around. Client retention policy overwrites pool.

Also, Frank Swasey - you are quite right. I had to delete previous save sets, 
because they will not pick up new retention policy. You have to run everything 
from scratch.

Regards
G

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