I have a Win 2003 domain running Exchange 2003 SP2 and Outlook 2007 email clients. In my local domain we use email and public folders. We also use our ISP for external email thru the Internet. I setup the Internet Email SMTP connector to connect the Exchange server to the ISP email accounts. In each user Outlook client the client has an account with the local Exchange server and an account with the ISP. Receiving email is not a problem but sending is. Whenever a client sends an email to the local domain mail box it is sent to the ISP and, of course, bounced back. How do I configure Outlook or Exchange so that local domain email is sent to the local mail box and Internet email is sent to the ISP?

What is the exact error message you get ? Do you have set the correct e-mail adres as the primary e-mail adres ?