Newly created distribution list not working

Hello Exchange Experts,

I'm running Exchange 2007.  I just created a distribution list called housing@coconino.az.gov and added my user account to this DL's membership.  I logged onto my gmail account and tried sending a test email to this list, and received the following error:
Delivery to the following recipient failed permanently:

    housing@coconino.az.gov

Technical details of permanent failure:
Google tried to deliver your message, but it was rejected by the recipient domain. We recommend contacting the other email provider for further information about the cause of this error. The error that the other server returned was: 550 550 5.1.1 <housing@coconino.az.gov>: Recipient address rejected: User unknown in relay recipient table (state 14).

----- Original message -----

MIME-Version: 1.0
Received: by 10.220.159.7 with HTTP; Thu, 22 Apr 2010 09:58:16 -0700 (PDT)
Date: Thu, 22 Apr 2010 09:58:16 -0700
Received: by 10.220.47.219 with SMTP id o27mr7005717vcf.69.1271955496422; Thu,
       22 Apr 2010 09:58:16 -0700 (PDT)
Message-ID: <u2w6a02dcd11004220958jd9f95b3cl53ab399bfb7be527@mail.gmail.com>
Subject: Test
From: Nick Dalmolin <ntdcc13@gmail.com>
To: housing@coconino.az.gov
Content-Type: multipart/alternative; boundary=0016e647615488cde40484d637e0

I made sure there were no delivery restriction, but don't know what else to do.  Any help would be greatly appreciated.

Thanks in advance,
Nick
LVL 1
ndalmolin_13Asked:
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Joseph DalyCommented:
Where did you create the distribution list? Did you try creating it through the ADUC or through the ESM. If you create a distro list in ADUC even though it looks like it is correct you will not be able to receive mail on it. All new mail enabled accounts need to be made in ESM.
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ndalmolin_13Author Commented:
I did create the distribution list in ADUC.  I will try recreating it using ESM.
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ndalmolin_13Author Commented:
I recreated the distribution list in ESM and received the same thing.
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tpaukovitsCommented:
After creating the DL in Exchange , open the DL properties and perform the following steps :
Mail Flow Settings
Message Delivery Restrictions > properties
Uncheck "require that all senders are authenticated"

Please try these steps.
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Joseph DalyCommented:
Try this as well. Create a second new distribution list through the ESM and see if that works. This way we can rule out the ADUC created on being the issue.
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ndalmolin_13Author Commented:
I was using the ESM that I installed on my workstation.  I deleted the distribution list and recreated it directly on the Exchange server and it is working now.

Nick
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ndalmolin_13Author Commented:
This worked if I used the ESM on the Exchange server
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