This small organization has about 10 users running Outlook 2003 SP3 connected to Exchange Server 2003 mailboxes. They can send and receive email just fine through their Exchange accounts.
A couple users have POP3/SMTP accounts set up in Outlook along side the Exchange accounts. The POP3 and SMTP servers are hosted by an external mail hosting company. These servers work just fine from other networks. The users can receive email through the POP3 server just fine.
But when they try to send email through the SMTP server (by clicking the Account dropdown box in a new message and choosing the alternate SMTP account), they receive the following error message email in their Inbox a second or two after hitting Send:
From: System Administrator
Sent: Tuesday, December 16, 2008 5:03 PM
To: information@smtpdomain.com
Subject: Undeliverable:
Your message did not reach some or all of the intended recipients.
Subject: the meeting
Sent: 12/16/2008 5:03 PM
The following recipient(s) cannot be reached:
John Smith on 12/16/2008 5:03 PM
550 User jsmith@domain.com not found.
(Domains/usernames/email addresses/etc. have been changed for privacy).
The email address jsmith@domain.com is a known, good email address. It doesn't matter what address they send to. They can even send to an email address that exists on the internal domain / Exchange Server, and still get the same error. I've deleted and recreated the POP3/SMTP accounts in Outlook. I've tried using different, known, good POP3/SMTP servers and get the same exact undeliverable email.
This problem started happening after we ran into a complicated issue on the Exchange Server (A couple months ago I deleted a mailbox which was part of a group of mailboxes/users that receive Non Delivery Reports. When the next Non Delivery Report was sent to this mailbox, another NDR was generated because the mailbox did not exist. That NDR was also sent to the mailbox, creating an infinite loop of NDRs, which were sent to everyone else in the group. It created about 40,000 NDRs before I found out the next morning and stopped it. I turned off NDRs and made several other changes to fix that problem. Now after that problem was resolved, this new SMTP Error 550 problem is occurring).
Any help would be greatly appreciated as I've looked for help on this before and no one seems to be able to help!