It does not need to physically move the contents of a file. When moving a file from one folder to another folder, it does not need to physically move the contents of a file. That does not rule out that in some cases, the developers of windows felt it was best to move the contents.
You should create a large text file with a unique start and a unique ending. Then delete it to recycle bin. Then run a data recovery and see if two copies show up.
Next link had one issue I did not realize. "The Recycle Bin only stores files deleted from hard drives, not from removable media, such as memory cards and floppy disks. It also doesn't store files deleted from network drives."
http://en.wikipedia.org/wiki/Recycle_Bin_(Windows)
And another issue I did not realize. If you hold down the shift key and hit delete, it bypasses the recycle bin. Now I can see why some newbies might feel the need to hold down the Shift key when using Delete key because for Task Manager you do crtl shift delete. That explains some questions that appear on this Yahoo Answers when people claim they deleted something but did not show up in the recycle bin. In the 80s, all you had to do was remove where a file started to delete it.
Some other interesting reading.
http://en.wikipedia.org/wiki/Recycle_bin_(computing)
http://en.wikipedia.org/wiki/File_deletion
http://en.wikipedia.org/wiki/File_manager
http://en.wikipedia.org/wiki/File_system
http://www.microsoft.com/whdc/device/storage/LocFileSys.mspx
Next one might have your answer buried in the history of the recycle bin.
http://www.datalifter.com/tutorial/tutorial.htm
There are Microsoft Newsgroups. Some Microsoft gurus will scan questions from time to time.
http://www.microsoft.com/windowsxp/expertzone/newsgroups/reader.mspx?query=recycle+bin&dg=microsoft.public.windowsxp.general&cat=en-us-ms-winxp&lang=en&cr=US&pt=&catlist=B0DE109D-10E1-4C3C-BCC9-8EB7A22FC6A0&dglist=&ptlist=&exp=&sloc=en-us
That was just on XP.
http://www.microsoft.com/communities/newsgroups/default.mspx
It is probably the best forum for your question.