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Having trouble configuring Exchange 2003 to send

I can receive but I am having trouble configuring my Exchange 2003 server to send email.

I ran the Internet Mail Wizard selecting Send Internet Mail (using DNS)

I can resolve okay.

This is the error message I get in the client:

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.
<ExchangeServer.mydomain.local #5.1.8 smtp;553 5.1.8 <ger@ExchangeServer.mydomain.local>... Domain of sender address ger@ExchangeServer.mydomain.local does not exist>
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Can your DNS resolve address outside of your organization - ie try an nslookup  If DNS can't resolve, then Exchange can't deliver.
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I can resolve okay. I get the same error when I configure it with the smart host option
Are there any error messages in the eventlogs? Routing Engine not started?

I can't help thinking it's some sort of DNS issue, even though you are able to resolve. Tried

What about the outcome?
Funny, I restarted my Outlook client and I can now send. However, I am getting an error every time I send / receive that reads:

Task 'Microsoft Exchange Server' reported error (0x8004010F) : 'The operation failed. An object could not be found.'
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It was addresses (Microsoft Mail addresses - that's what Exchange is replacing here) I removed them and the error went away.