Delivery has failed to these recipients or distribution lists: Cannot email someone with same domain in email address from inside Exchange to outside

Hi all,

I trust this wil make sense, trying to get my head around some of exchange features.

System is  SBS 2008 with a virtiual drive running 2008standard r2.

Our domain named emails are hosted elsewhere not by our server at this stage. e.g aussiehost.com

But Exchange 2007 handles al incoming and outbound emails by pop3 connector settings.

i.e Outlook on virtual server access's the emails sent to us via global domain policy.

All is working fine, but I am trying to work out  if this is even possible to do.

1 Email address Phyllis@domain.com.au. Which is same domain name we access other emails on SBS server.

Wish it to be accessed without that person being part of our server network.

i.e Access it via Outlook 2010 on a another site's PC.

Does this make sense?

As if I try to email Phyllis@domain.com.au from within outlook on the server, I get the following error.

Hopefully I have provided enough information for someone to answer this.

Thanks Phil

http://www.pmassociates.com.au/