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Email Address using FQDN not short domain name

Running Server 2008 with Exchange 2007 VM on Server 08 OS.  We had to restore the main Server 2008 OS after drive failure from a backup. Re-setup the VM after installing Hyper-V RTM there seems to be some domain issues where  the domain is being seen as the FQDN and not the short domain IE dwd.ducworks.com instead of ducworks.com.  This is effecting outlook clients as their email address is showing as admin@dwd.ducworks.com instead of admin@ducworks.com (when you hit send and receive the status box comes up and shows the FQDN as well)  They can receive email but cannot send.
Email ProtocolsDNSExchange

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8/22/2022 - Mon