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E-mail to external recipients with the same e-mail domain

We have a SBS 2003. We have setup webmailer accounts for several external users who are to use the same email domain address as internal users. We activated "Forward all mail with unresolved recipients to host" on the Exchange server (see http://support.microsoft.com/?scid=kb%3Ben-us%3B300681&x=17&y=8). All works fine when sending from internal to extern_user1@company.com.

I wanted to make it easier for internal users and associated each external email address with a contact record, so users could choose "user1" from the Global Address Book and the email would get forwarded to "extern_user1@company.com". However, here we get a Non Delivery Report (NDR) message saying the email can't get delivered. If I removed the contact record, works fine.

I basically want to setup friendly names for these external email addresses. Any ideas?
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Sembee
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Many thanks for your links.

Regarding link http://support.microsoft.com/default.aspx?kbid=321721, it mentions "If your Exchange environment is the last system in the chain, do not use the following procedure to configure Exchange". As I only have 1 Exchange server which collects email from our providers via a POP3-catchall account, I moved onto the next article...

http://support.microsoft.com/default.aspx?kbid=319759 - fixed the problem! Many thanks.