NDRs w/Exchange 2003 using Smarthost

I have a client that is using SBS 2003 w/exchange 2003.  He has a smtp connector that is pointing to a Smarthost.  He cannot send mail from Outlook 2003 to an email address in his smarthost domain ie xxx@abc.com.  He can send mail to anyone outside of his domain.  
There are many workers that have email addresses that are not users on the SBS2003.  These are the email users that he gets an NDR from.  
SBS2003 users get mail OK through the Exchange.
Is the trouble on the SBS2003 or the Smarthost ISP?
HartnettAsked:
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Jeffrey Kane - TechSoEasyPrincipal ConsultantCommented:
So, their "SmartHost" is actually the company's domain name or the ISP's?

If they are using their hosted web server as the email smarthost, then of course they'll get an NDR sending to the same domain name if you are also using the POP3 Connector to retrieve email.

See http://support.microsoft.com/kb/300681 for details.

Jeff
TechSoEasy
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SembeeCommented:
Without seeing what the NDR says, it is difficult to say. I would suspect the ISPs domain - perhaps using the wrong smart host. Was the SMTP connector configured using the SBS wizard or manually?

Simon.
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HartnettAuthor Commented:
The NDR says The e-mail account does not exist at the organization this message was sent to.  Check the e-mail address, or contact the receipt directly to find out the correct address.  #<5.1.1>
The email addresses do exist and can be reached from other locations.

As for whether the SmartHost was created with the wizard or manually, I don't know.  I was asked to look at this after it was done.
The setting under exchange->connectors> Small Business SMTP  the radio button is selected for 'Forward all mail through this connector to the following Smarthost'.    mail.domainname.com  where domainname has the real domain name.  Furthermore :
The setting under exchange->server->protocols->SMTP->Default Virtual SMTP -> properties->Delivery Tab->Advance has the domainname.com in the domain box and   mail.domainname.com in the Smarthost  box.
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HartnettAuthor Commented:
OK, I will try this and let you know the outcome.
Thanks
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HartnettAuthor Commented:
Fantastic, that fixed my problem!
Thanks
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Jeffrey Kane - TechSoEasyPrincipal ConsultantCommented:
Glad you got it working.

Jeff
TechSoEasy
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