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Exchange SMTP won't deliver outbound mail; I give up

I've exhausted every web resource on this. Installed E2k server in 5.5 site, moved a couple mailboxes. Everything about the setup works now (after a week of troubleshooting other problems) except for the outbound mail. Inbound works fine, within org works fine, outbound no dice. There's nothing in the queues, message tracking will not find them, they just sit somewhere I guess, until I turn the IMS from 5.5 back on, then they go out. It could well be they sit in the 5.5 server but why and how would I stop that? DNS configured correctly.

Let me show the current settings for the default SMTP virtual server:
IP address: all unassigned (port 25)
Logging enabled
Access: Anonymous, Basic, and Integrated
Relay: only list below (blank); allow all computers which authenticate .... (also tried with this off, doesn't work either way)
Default Message settings
Delivery: default, anonymous access
Advanced Delivery: 15
masquerade: mydomain.com
fqdn: mail.mydomain.com or actual internal fqdn which is mx1.hq.mydomain.com; tried both of them.
no smart host.
no reverse DNS.
external DNS servers configured for internet DNS servers, not my internals at hq.mydomain.com that I tried also.

Somebody please help me figure this out!

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OK. Incoming was working so I did the 2nd portion; and rebooted both the 5.5 and 2k server. Now I get NDR's as follows:
         The e-mail address could not be found.  Perhaps the recipient moved to a different e-mail organization, or there was a mistake in the address.  Check the address and try again.The MTS-ID of the original message is:c=US;a= ;p=Paradigm Technol;l=MX1-050311000117Z-6
            MSEXCH:MSExchangeMTA:PTIHQ:MX1
This is for an outside address, but it's acting as if it's supposed to be an inside recipient. The inside recipients still work as advertised.
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Exchange_Admin

Are you saying that this NDR happens when a user outside your organization REPLIED to a message sent from an internal user when their mailbox was homed on the Exchange 5.5 server?
If the above is true, are the Exchange services on the 5.5 server turned off?

No, NDR's were returned for internal users trying to send to outside mailboxes. I eventually solved the problem by about 1am. It turns out, what nobody was telling me all the info, that I NEEDED an SMTP connector on the Exchange 2000 Server: http://support.microsoft.com/kb/265293
Whereas previous articles on the KB had implied that the Default SMTP server was enough, well it's enough for the E2k server, not for the 5.5 server, which was lost without it's IMC. After configuring and reconfiguring the SMTP connector I eventually got it how it's supposed to be.
Other helpful articles for future people in this situation:
http://support.microsoft.com/?kbid=294736
http://support.microsoft.com/kb/262206/en-us
You would think mine would be a more common case; installing an Exchange 2000 server and making sure all mail flow works before taking the leap of moving all the mailboxes on to it.
Exchange Admin you'll probably get full points even though you only gave me half the story. Thanks for the half though, it got me on the right track.
Hmmm.... create another SMTP connector. I would have thought that the default one would have worked also.
But if you look in the article that I posted it says:
Configure a new SMTP connector on the Exchange server that you want to be the bridgehead server for outgoing Internet mail. For additional information, click the following article number to view the article in the Microsoft Knowledge Base: ......

I guess maybe MS should have made this clearer.

Glad it is working now.

You're right, it was clearly in there. I must have skipped it the first time, but that was the article I came back to and used. MS did kind of treat it as an afterthought. The whole process is done except for dismantling the 5.5 servers. Thanks again for your help.