I had the exact same problem. I went through every folder and subfolder and compacted from the context menu, as soon as I was done deletions were back to their normal speeds. Brilliant! However, this seems highly inefficient, I have looked in the options and menus for a "compact all" button, or "auto compact folders" as the previous post suggested, however I have not found such a thing. Perhaps its time for a new pair of glasses, but would be grateful if you could expand upon that. Thanks in advance.