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Can an Existing Exchange server be set up for POP when adding a new SMTP domain?

I have a client that recently split off a division.  They set this new division up with it's own domain.  So, we currently have two domains(Domain1 and Domain2) that are totally separate.  However, since each division is small(Under 100 users), they would like to share the exchange server in domain 1 that already exists.  Please keep in mind that each company will have its own smtp domain(company1.com and company2.com).  They would like the local users that are on the same domain as the exchange server to access Exchange the normal way(s).  They would then like to set up Pop3 messaging on the Exchange server just for the company2.com domain users. So, is this possible, and if so, what is the best way to accomplish this?  Thank you for any help!
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They want to use Outlook, so OWA wouldn't work for them.  As far as the server being SBS, it is not, it is Windows 2k3 AD Domain with Exchange Server.  Is it that simple to setup pop3 on an Exchange Server as well?  Finally, I understand that I will just set up their accounts in AD and then enable pop3 access.  How do you tell each account which SMTP domain that they are a part of?  Since there will be multiple domains, I don't want each account to have addresses on each domain.  Thanks again.
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All Solutions presented will help me accomplish this fairly easily.  Thank you all for your help.