Greg,
The lease settings in VCD do seem a little odd to me, but here is what it seems to do (at least it did in v1.0)
Two different lease:
Running and Storage
each can be set from small time -> whatever the MAX settings time for the Org is (default I think is 14 or 30 days)
When a vApp is started the "Running Lease" starts - when time is up shuts down the vApp
Now the "Storage" lease starts...
When the storage lease ends the item will be either moved to Expired Folder, or deleted (based on your system settings).
Now for one of the odd things... If you Stop a vApp and Start it again - the lease starts over. (This really drvies us nuts as we want users to get an item for 2 weeks - not however long they want to)
Emails do not go out - (if they are suppose to .. they do not for us)
Hope this helps some. We have had to start mvoing to using the API to control lease type items ourself for some needs.
ChrisF (VCP4, VCP5, VCP-Cloud) - If you find this or any other answer useful please consider awarding points by marking the answer correct or helpful