The goal was to setup Filtering on Exchange Server to redirect emails coming into the organization from an ex-employee. Once setup, Exchange 2003 will store the emails in a folder located at \\ServerName\c$\Program Files\Exchsrvr\Mailroot\vsi 1\Filter
Open Exchange System Manager
Global Settings –>Message Delivery–> Properties
Under Sender Filtering Tab enter addresses to Filter and click on Archive and Accept without Notifying. Click OK. Prompt tells you that you need to enable Sender Filtering on the default SMTP virtual connector.
Under Servers–>ServerName–>SMTP–>default SMTP virtual Connector–>Properties.
On General Tab, click Advanced next to the IP address field.
Click Edit and then select the filters to apply. Save and exit.
Repeat for the Default SMTP virtual connector on your Front/Back end Exchange server as well.