Outlook 2007 reply to incomming email

When I reply to an incomming email from from outlook 2007 I get a message from the system administrator indicating the the reply is undeliverable. I can send an email to the account if I create a new message but not if I reply to the message.

The list of recipients is blank and there is no indication as to why it has been undelivered.

Using Outlook 2007, on a Windows XP Professional 2002 SP3, Company network with en Exchange 2003 Server, Smime enabled.

Sorry if this question has been asked before but I just cannot find the answer.
pabby0612Asked:
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pabby0612Connect With a Mentor Author Commented:
I have found what is causing this error on my own - it would appear to be the setting for "encrypt contents and attachments for outgoing messages". If this is enabled and you reply to an incomming external email then the reply is bounced back by outlook. This does not happen to internal emails. There is also an SMIME certificate on this installation of outlook.
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pony10usCommented:
When you say "no indication as to why..." you don't get something like the following in the email telling you it was undeliverable?

The following recipient(s) cannot be reached:

      name@company.domain on 1/9/2013 8:59 AM
            The e-mail account does not exist at the organization this message was sent to.  Check the e-mail address, or contact the recipient directly to find out the correct address.

   <mailserver.company.domain #5.1.1>
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flubbsterCommented:
Try disabling the email scanning of any antivirus you are using (temporarily). This is especially true if you are using the latest version of PC Tools Security.
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pabby0612Author Commented:
in answer to the first comment - there is a message 'The following recipient(s) cannot be reached:' but there are no recipients listed.

in answer to the second question - AVG Internet security is active and has been for some time.

The bounce back message appears as soon as the email is sent and only on replies - if the recipients address/es are added manually then the email is sent.

This was not noticed prior to SMime being enabled.
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pabby0612Author Commented:
PS - it would appear to be related to replying to external incomming emails. Incomming emails go through a web based spam filter (Panda) - don't know if this has any baring on my issue.

All company emails are processed through Panda, and PCs have the same anti-virus, but my PC is the only one with an Smime certificate.
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pabby0612Author Commented:
Thanks for your efforts but I have found a work around to the problem.
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