Mail forwarding to distribution list SBS 2011

SBS 2011, Exchange 2010 - I have a mailbox "abc@mydomain.com" with the sole purpose of receiving email from an external website.  The email should be forwarded to 3 internal recipients in my organization - so I have created a distribution list "xyz@mydomain.com" with the 3 mailboxes as members. However, the email does not get forwarded to the recipients, but if I configure this mailbox to forward to a SINGLE internal recipient, it DOES get forwarded.

I have added both mailboxes to my spam filter so that does not appear to be the problem.  In Exchange Management Console, under delivery options, I have the forwarding address on "abc@mydomain.com" checked and "Deliver message to both forwarding address and mailbox" checked.

I'm not sure what to look for in the message tracking logs for this, if this is the first suggestion for finding a fix.
lita-pieAsked:
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Simon Butler (Sembee)ConsultantCommented:
Have you changed the settings on the group from the default, which is that all senders need to be authenticated? If not then that can stop the email from being delivered to the users.

Simon.
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banxyCommented:
Simons suggestion was my first thought.
Also double check the hosting provider. Often they think They are responsible for the mail of the domain they are hosting so emails from the web site never make it to your in house mail server. If this is the case they need to change their own MX records to mirror the Real DNS server for your domain name.
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lita-pieAuthor Commented:
Accept messages from all senders is bulleted, require that all senders are authenticated is not checked. Message moderation is not checked
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lita-pieAuthor Commented:
banxy, note that I DO receive the original email and can forward to a single recipient, but not to a distribution list.
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Simon Butler (Sembee)ConsultantCommented:
Can you send to the group correctly?
Does message tracking show anything?

Simon.
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lita-pieAuthor Commented:
Inexplicably it is working now.  I did change the properties of the distribution group to include the .local email address, whereas it was not originally set up (xyz@mydomain.com and added xyz@mydomain.local.)

Didn't think that would fix it!  But as I said, working now.

Thanks
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lita-pieAuthor Commented:
I give it a B because Simon's suggestions were relevant but not necessarily what fixed the issue.  The other responder misunderstood the conditions and his response was not applicable to the problem.
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