Setting up incoming email to a web part Sharepoint 2007 with Exchange 2007.

Hey guys / gals,
I am trying to get a web part to receive email from domain and non-domain users.
Environment: (For security these are not the real email address, IP addresses or FQDN.)
Sharepoint 2007 – Public IP 74.XXX.XXX103 Priv. IP –
 Exchange 2007 - Public IP 74.XXX.XXX.104 Priv. IP –
(Sharepoint and Exchange are in the same Public and private subnets and Domain)
 Postini inbound and outbound filtering
When I configure a web part to receive incoming email, the default email address is I have set up the relay on Exchange to pass email to I have added the FQDN  to Postini as an alias.
Error Message when sending email to  from a domain account.
Generating server:
#550 5.1.1 RESOLVER.ADR.RecipNotFound; not found ##
The address that was created in AD was a ‘contact’ for  not a user.
If this has been address before can you point me to a link with my apologies? Thanks all for the help!
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Justin SmithSr. System EngineerCommented:
In order for SharePoit to recieve email, the SMTP service has to be running on the WFE server(s).  Did you do this?

Good info:
Cehlers1159Author Commented:
I am running Windows 2003 32 bit Standard R2 on the Sharepoint server and yes, I do have the SMTP service running...I should have metioned that in the questions...Thanks!
Justin SmithSr. System EngineerCommented:
Have you verified the correct email addresses exist on the contact, in Exchange?  You have set up a connector the the sharePoint box, right?
Cehlers1159Author Commented:
The email address is correct in the contact. As far as the connector, can you elaborate? I have the relay set up on the exchange server. I am replacing a disgrunted predecessor who felt that any kind of documentation was optional...Thanks
Justin SmithSr. System EngineerCommented:
A connector to tell Exchange to send all email destined for to the SharePoint box.  

Have you taken a look at the white paper I posted?

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