HP Storage Mirroring Software - Manual (Page 116)

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Encrypted files that are deleted on the source will only be moved on the
target if the move location is on the same volume as the replication set
target path.
Compressed and sparse files that are deleted on the source will be moved
on the target, although the compression and sparse flags will only be
retained on the target if the move location is on the same volume as the
replication set target path.
5. Click OK to save the settings.
Specifying the Storage Mirroring Recover database storage files
1. Open the Replication Console and right-click the server on the left pane of the
Replication Console.
2. Select Properties
3. Select the Database tab.