Microsoft doesn’t always produce crap. Entourage is actually a pretty good email application and I’ve been using it for years now.
But I’ve decided to revisit Mail.app and it’s also a great e-mail application, but one of the reasons I’ve never used it was because I could never figure out how to tell the application to use my IMAP folders (on Dreamhost) for specific functions like using my IMAP “Trash” as the real Trash, etc.
Thanks to my buddy dalematic, I’ve found the solution:

note: this problem was previously solved using this method.