When sending email addresses outside of my exchange server I get this:
The following recipient(s) could not be reached:
firstname.lastname@example.org on 11/10/2008 1:52 PM
You do not have permission to send to this recipient. For assistance, contact your system administrator.
<40dccsp01.dcc.local #5.7.1 smtp;550 5.7.1 <email@example.com>... Relaying denied>
In the message history it shows SMTP: Started Outbound Transfer of Message then SMTP: Non-Delivered Report (NDG Generated. The is not sent from Exchange to the smart host.