Your message did not reach some or all of the intended recipients

When users send messages to some addresses the following error is returned

Your message did not reach some or all of the intended recipients.

The following recipient(s) could not be reached:

      "destination e-maill"' on 10/30/2008 10:17 AM
            You do not have permission to send to this recipient.  For assistance, contact your system administrator.
            <KTPO04.ktpo.ops #5.7.1 smtp;550 5.7.1 Client host rejected: cannot find your hostname, [our e-mail server address]>

We use Exchange 2003 on a MS Windows 2003 SP2 server
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ktpoitmAsked:
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MobiNet-caConnect With a Mentor Commented:

This might be a reverse DNS issue. The receiving server looks up the IP address of the sending SMTP server to check if it has an associated hostname value. If a DNS record comes back for that IP address the receiving server  then tries to lookup the IP information of that DNS record to confirm that it has a valid IP record.

nslookup - 123.123.123.123
returns - someserver.yourdomain.com
nslookup - someserver.yourdomain.com
returns - no valid address

Try that lookup sequence with your IPs and hostnames to see if the IP <-> HOSTNAME <-> IP records all exist.
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EfrenMCommented:
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