Does error 550-'sorry, no mailbox here by that name' have anything to do with DNS propagation?

Here's the situation:  The company I started working for has been hosting their website with Yahoo! who is also their registrar.  I needed MSSQL and ASP.NET 2.0 capabilities so I opened a new hosting acount with, designed a new website then on 6/27/09 switched the Name Servers to point to using the Yahoo! Domain Control Panel.  Within an hour, the new web site was visible (resolving to the new IP).  I set all Outllook settings to send/receive using the mail server, then tested sending and receiving to various and went home for the day!
On Monday, a friend who tried to email me called and said she got the email kicked back immediately.  I tested an email from and got the same result:

Reporting-MTA: dns;
Final-Recipient: rfc822;
Action: failed
Status: 5.0.0 (permanent failure)
Remote-MTA: dns; []
Diagnostic-Code: smtp; 5.1.0 - Unknown address error 550-'sorry, no mailbox here by that name (#5.1.1)' (delivery attempts: 0)

I had a panic attack and assumed I did something wrong, and changed the MX record at Yahoo (which was totally wrong) ixwebhosting is taking care of the Name Servers, but it changed the date I updated the name servers to 30-Jun-09.  Now everyone is telling me to wait patiently until Friday.

I have contacted Yahoo! support to see if there was anything I could have missed, they tell me they can't help me because I changed the name servers to an outside company ( tells me to be patient, the DNS propagation is still taking place.  This is where my gut is telling me there is something else wrong due to the error message (above).  It seems like it's finding the mail server, but the mail server can't find the mailbox.

My boss gave me until Monday to get SOMETHING working.  What would you do?  Switch back to the Yahoo! hosting?  Wait til Friday?  Then what?  Any help would be greatly appreciated.
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Did you intend to move the mail server from Yahoo?  If you didn't, you should change the MX record to point back to Yahoo's mail server(s).

Currently, the MX record is

;; ANSWER SECTION:         86239   IN      MX      10

and points elsewhere:

;; ANSWER SECTION:    86257   IN      CNAME 86258 IN      A
Diamond1ITAuthor Commented:
Yes, I intended for ixwebhosting to handle the mail.  The MX record of is  Doesn't it seem like the mail should be finding the correct mail box?  If you try to send an email to (legitimate mailbox).  You'll see the error I get.  Thanks for your response.
Diamond1ITAuthor Commented:
If this helps here's a message header from an email sent via Outlook using as the pop and smtp server:
Return-Path: <>
Received: (qmail 27670 invoked by uid 399); 2 Jul 2009 21:09:08 -0000
Received: (qmail 27655 invoked by uid 399); 2 Jul 2009 21:09:07 -0000
X-Spam-Checker-Version: SpamAssassin 3.2.5 (2008-06-10) on
X-Spam-Level: ****
X-Spam-Status: No, score=4.9 required=5.0 tests=AWL,HTML_MESSAGE,
      autolearn=disabled version=3.2.5
Received: from unknown (HELO xxx) (
  by with ESMTPM; 2 Jul 2009 21:09:07 -0000
From: "xxxx Gxxxxx" <>
To: <>
Subject: Test Message on 7/2/09
Date: Thu, 2 Jul 2009 14:09:57 -0700
Message-ID: <000001c9fb59$74472310$5cd56930$@com>
MIME-Version: 1.0
Content-Type: multipart/related;
X-Mailer: Microsoft Office Outlook 12.0
Thread-Index: Acn7WXO0b50SSDHYRii1feO5JW4KMQ==
Content-Language: en-us

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I'm confused, you say you want to use for you email, but then you say your MX record is set to it isn't:

# host -t mx mail is handled by 10

According to that MX record is hosting your mail, but are the mailboxes on that ixwebhosting server or your server?

I have a feeling your MX record should be set to instead of, but maybe I'm not understanding your setup.
Diamond1ITAuthor Commented:
Sorry for any confusion.  I guess the easiest way to say it is I don't want Yahoo hosting the email anymore but have ixwebhosting handle it.  Their settings are automatic when you set up a domain, I've used them before.  So the is set up by them.

Back to the original question:
If everything is set up correctly, could DNS propagation be causing the error 550-'sorry, no mailbox here by that name.  
It's been nearly 72 hours with the same error message.
if everything is set correctly DNS propagation could be the problem. If some old MX records are still out there they will have no choice but to send mail servers to the wrong destination.
However, 72 hours is a bit steep in dns propagation nowadays.
Question: Have you actually physically made mail accounts on the new server?
If you want ixwebhosting hosting your email, where does your server come into the picture?
Diamond1ITAuthor Commented:
Thanks for all the input guys.  72 hours was a bit steep.  ixwebhosting got back to me this morning and told me a system admin fixed something on their end.  (I'm trying to find out what went wrong) I will post their answer when/if I receive one.  Seems their tech support was blowing me off as long as they were under their 72-hour umbrella.  They've been a great hosting company in the past, maybe a little lazy this time around.

Again, thanks for the posts.  


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