When I click “Subject” I would expect that the yellow items are grouped together. The replied mails should be in the same group as the original mails, even if they have the prefix “Re:” or “Fwd:” in their subjects.

Figure: The yellow items should be in the same group
And other ones along the same lines – these 3 should be together

Figure: Screen capture from Outlook 2003 Beta 2

Figure: Outlook won’t thread the two messages together