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Exchange 2003 configuration issues


Background to the scenario:
We have just installed a new SBS 2003 SP2  Server with Exchange 2003 for a client who are primarily based in the US with a sattelite office in the UK which we have just built.

Essentially they own a domain with email addresses of smtp address. The MX records for this domain are pointed at the US based mail servers which then relay email back to our new UK mail server. The difficulty is that some users are based in the UK and are not allowed to use smtp addresses.

The problem is generated when a uk based user with the email address attempts to email the US based address within the same company but based on different mail servers (they typically recieve a NDR with the following information:
The following recipient(s) cannot be reached:

      John Doe on 04/08/2008 17:26

            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.

            < #5.1.1>

Am I correct to assume this because the local smtp server (originating in London) cannot find John.doe mail info locally (as it doesnt exist) and returns the NDR.

Our attempts to resolve the issue have included the following:
1) Remove the fixup Protocol on both firewall in the UK and the US
2) Remove the local default recipient policies and ensure that the  address is added as the non authorative Exchange organisation for mail delivery to this address
3) Added new local forward DNS lookup zones that include MX records for the and A records for those MX records with the correct Public IPs
4) I can (from the local exchange server in the UK) connect to the US exchange server via telnet on port 25 (to the public mx record for )and send an email from the address to the intended recipient who does recieve the email successfully

In an ideal world the configuration would have been different from the start architectually but we need a resolution for the current build.

Any help would be greatly appreciate.


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