We have two servers over one domain, the problem is we have e-mails being sent with users from both servers in one e-mail, which is creating a continuous looping error. If we turn the option that sends unknown users to the internet. then they cant send internal emails from server to server. Any Solutions to this?

i have seen your question over the past few days, and havent commented because i dont really understand what you are asking. what is your exact configuration, and what symptoms aer you experiencing?

we have two SBS servers at two separate locations. Both are using the same domain to receive e-mails. Users are different at each location. When someone sends an email to user@domain.com and also user1@domain.com in the same e-mail.a loop is created because user@domain.com is at one location and user1@domain.com is at the other location. We have set the rule to send unkown users back to the internet, this is the prime cause of the loop.But if the rule is taken off, then the concerned domain users cannot send internal e-mails between locations which they need to do.The client doesn't want the domain re-named to user@location.domain.com etc.Any help would be appreciated.Thanks

are the active directory domains on each sbs server called domain.com? if so, this would not be a proper configuration. when you say "the rule to send unkown users back to the internet" what are you talking about? exchange has an opion to forward unresolved messages to an external host (a specific host, not just back to the source) read here: http://support.microsoft.com/kb/300681 if its not too late, you might consider setting one of the locations up as a 2nd server with exchange on it - not another SBS server.