Outlook clients having issue sending to certain email address

We are migrating emails via a pst file from an outside email system (which they were using pop) to now get their email via exch 2010. Whenever the users tries to send an email to a certain address, which this adddress is setup in exch as an accepted domain, they are getting the following error:

The e-mail address you entered couldn't be found. Please check the recipient's e-mail address and try to resend the message. If the problem continues, please contact your helpdesk
Am I missing something on the exch server setup?.
I can send to the same email address from my own email and it works just fine but does not from the clients email.
Any ideas here would be apprecitated.
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vmichAsked:
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ScriptAddictCommented:
Did you have them wipe their autocomplete?  
I know when I moved servers on two different 2010 exchange servers, autocomplete stopped working.  

Does it still have problems if they don't use autocomplete to send the email?  (select it manually from GAB)
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vmichAuthor Commented:
What do you mean by wipe their autocomplete?
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ScriptAddictCommented:
Just that every user has an autocomplete in their outlook client.  for 2010 it's cleared here:


Auto-Complete clear on my Outlook 2010 client
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vmichAuthor Commented:
I get the error even if I logon to owa locally on the server as a test account when sending to the email address.
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ash007Commented:
can you enter full email address and try to send mail
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vmichAuthor Commented:
solved
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