MSExchangeTransport Event ID: 3017 - 5.3.5 Variety Error

I have the 5.3.5 variety error occuring on an exchange server 2003 with SP2 installed.
Virtual server is not pointing to any internal or external servers.
Followed everything that support.microsoft page suggested.
http://support.microsoft.com/kb/555418
Still getting error periodically. Any suggestions or where to look further.

A non-delivery report with a status code of 5.3.5 was generated for recipient rfc822;username@domainname.com (Message-ID  <82af01c837b0$aa66ba50$a07778d0@German>).  
Causes: A looping condition was detected. (The server is configured to route mail back to itself). If you have multiple SMTP Virtual Servers configured on your Exchange server, make sure they are defined by a unique incoming port and that the outgoing SMTP port configuration is valid to avoid looping between local virtual servers.    
Solution: Check the configuration of the virtual serverÆs connectors for loops and ensure each virtual server is defined by a unique incoming port.
 
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kevinytechsAsked:
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kevinytechsConnect With a Mentor Author Commented:
The problem found was due to email forwarding back to the mail server if an unrecognized email destination was received. As soon as the server was removed the loop back went away. Thanks foir your help Sembee.
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SembeeCommented:
Is this happening for all users, just one user?
Does the user have any rules that could be doing the looping?

Simon.
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tregnemCommented:
Kevinytechs, can you elaborate on this solution. I am having the same problem. It is intermittent and I have tried every possible solution out there. There is only one server on site.

 A configuration error in the e-mail system caused the message to bounce between two servers or to be forwarded between two recipients.  Contact your administrator.

            <contessainsurance.com #5.3.5>
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