troubleshooting Question

Microsoft Exchange Server 2003 - "The SMTP Trible-Trouble Receipient Maze"

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ActiveInfoSysFlag for United Kingdom of Great Britain and Northern Ireland asked on
SBSExchangeEmail Clients
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Hello Community-

Have really major issue on hands right now.  Did a SBS2003 with Microsoft Exchange 2003, SP2 on the weekend.
All looked OK.
However, big problem.  Sending to remote based staff using external domain name not working.  

Context:  There are about 7 internal people based in an office and with an account in Exchange, Active Directory.  These folks can communicate with themselves.  So OK.

The Problem: However, there are remotely based individuals who do not have a mailbox on the local exchange server, nor AD account, but only the Internet-based POP3 account.  

The POP3 receiving mail is OK for internal users.  And for external.  Sending between each other is the problem. Buthen an internal user (with Exchange mailbox) tries to contact remotely based staff member with no exchange account (but same internet domain name), the following happens:
"1"
  The e-mail account does not exist at the organization this message was sent to. Check the e-mail address, or contact the recipient directly to find out the correct address.

"2"
If I create the remotley basd user account on the local exchange server, mail only makes it to the internal mailbox, never to go outside to the POP3 mailbox.  So above error bypassed, but mail just stays inside organisation...but I need it to go outside, however, the exchange server's domain name is the same as internet domain name...so email stays local.  Not good.

"3"
Even if I create a external contact for the remote user, the following appears:
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.

Not sure how to proceed.   Any ideas, very, very appreciated.
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