the attempted operation is prohibited because it exceeds the list view threshold enforced

I have done  MOSS2007  migrate to SP2010 after all is running smothe base but now I have facing issue when try to configured Library Based Retention Schedule on document library,

and apply this then get the error like "the attempted operation is prohibited because it exceeds the list view threshold enforced"

Kindly check belwo screen for review

Already check threshold limit by CA,all is right configuration.

Hasan Jamal Siddiqui(MCTS,MCPD,ITIL@V3),Share Point Application Developer,TCS