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Can't send or receive internal email on new SBS 2011 domain

I just set up new SBS 2011 Server, we can send and receive email outside the domain, but cant send and receive to internal domain users.  Error #550 5.1.1 RESOLVER.ADR.ExRecipNotFound; not found # # Please advise.
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I did not try to rebuild the OAB. I went through the Auto Recall on each local machine and deleted the Domain email addresses, and it started working after manually typing in their address or filling from contacts. The problem was caused from transferring the .NK2 file from the machines joined to the previous SBS2003 domain, and were indeed trying to resolve to the non existent Server. PS on SBS the Exchange Server and The DC are the same.