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Exchange 2007 on Server 2008 - problems with hub transport, no email in or out

Just finished setting up Exchange 2007 SP1 with all updates on Server 2008.  We have an existing Exchange 2003 server running on Server 2003 that is running fine and are co-existing.  We're ready to move mailboxes, so we moved a test user over to 2007 and found we can't send or receive as that user.  Anything the user sends (Internal or external) just sit in the outbox.  If we try to send to the user from outside, we receive an immediate NDR.

So far, no AV on the Exchange 2007 box.  Exchange 2003 does have Forefront on it.

This is a typical Ex2007 install - there is no edge and the mailbox, client access and hub transport are on the same box.  

Running BPA does not give us any errors or notices.

Did a fair amount of research online and read about back pressure.  We're not receiving any errors regarding this.  Our C: drive has about 10 gigs free, which is where Exchange is installed, and our E: drive has about 80 gigs free, which is where our data lives.  Server has 4 gigs of memory.

The transport service is set to auto and is not running.  Credentials are currently network service.  Also tried as local system, no good.  As domain admin, the service runs, but doesn't help.

Here is the only error we're receiving -

Log Name:      Application
Source:        MSExchangeMailSubmission
Date:          10/13/2008 7:55:16 PM
Event ID:      1009
Task Category: MSExchangeMailSubmission
Level:         Warning
Keywords:      Classic
User:          N/A
Computer:      EXCH002.domain.com
Description:
The Microsoft Exchange Mail Submission Service is currently unable to contact any Hub Transport servers in the local Active Directory site. The servers may be too busy to accept new connections at this time.
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dipersp
Asked:
dipersp
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1 Solution
 
Justin DurrantSr. Engineer - Windows Server/VirtualizationCommented:
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diperspAuthor Commented:
Here's the NDR:
Delivery has failed to these recipients or distribution lists:

Administrator
The recipient's e-mail system can't process this message. Microsoft Exchange will not try to redeliver this e-mail message for you. Please provide the following diagnostic text to your system administrator.

Diagnostic information for administrators:

Generating server: remotedomain.com

Administrator@remotedomain.com
#< #5.3.3 smtp;500 5.3.3 Unrecognized command> #SMTP#

As for the link you sent, under user actions,
"Make sure that the Microsoft Exchange Transport Service is enabled and running on the Hub Transport server."
- Well, right there's a problem.  Can't get the transport service running.

"Make sure that no firewalls filter network data or block MAPI remote procedure call (RPC) traffic between the Mailbox server and Hub Transport server."
- No firewall on the 2003 server, and the firewall is turned off on the 2008 server.

"Make sure that the Mailbox server and the Hub Transport server are not deployed in a perimeter network."
- Nope, mailbox and hub transport are on the same box on the internal network.

If this frequently occurs, consider whether you should add more processors on the Hub Transport server. You can also increase the value of MaxConcurrentMailboxSubmissions by using the Set-TransportServer cmdlet. For more information, see Set-TransportServer.
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diperspAuthor Commented:
Found the problem - we had moved the transport logs to an alternative drive, and the network service didn't have the proper rights to the transportroles directory on that drive.  Once we fixed the permissions, started up and sent mail!
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