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Local users can't send mails internally unless they select the local exchange 2010 account.

Hey Guys,
                 Not sure the title made much sense but allow me to explain further. I've recently set up an exchange 2010 environment for a small organization. I've created the smtp * send connector and local mailbox accounts for the users. I've set up the users pop3 accounts in outlook 2007 along with local exchange mailboxes (so thats 2 accounts). Now here's the thing users can send emails locally only is the default account is the local server and can only send external mails if the pop account is default. Has anyone ever experienced this before? I'm pretty sure this is a DNS issue, but I don't know much about exchange dns records.
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what happens when you configure only one account, does it work fine
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Yeah one account works great. If i want to send an email to a local user i can select the local account and it goes. But this is really troublesome.
if you have 2 accounts defined then you will have to choose from which one you send...
I really think this should be automatic, I've seen it done before.
Go to Toolbox > Best Practices Analyzer
run a health scan
Export the report as HTML
upload it here

Will do I'll pay a visit to the client today.
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