Standard email Android 4 client doesn't keep local copy of emails The new standard email client with Android 4, doesn't seem to keep local copies of emails once they are deleted off the server.

Honeycomb did. The email was downloaded to the tablet, and kept even after the email was deleted from the server.

I'm using an Acer A500 with Android version 4.0.3 (kernal 2.6.39.4+).

Email set up is 'normal'/standard POP3 account.
Setting is Delete email from server: Never
What am I doing wrong?
Are you really using POP3? It's a behaviour of IMAP... not POP3. If yes, it's certainly a bug. Better, use different email client like K9-mail.